The Sarbanes-Oxley Act Requires All of the Following,EXCEPT

question 32

Multiple Choice

The Sarbanes-Oxley Act requires all of the following,EXCEPT:

• A)that audit partners rotate every five years to limit the likelihood that auditing relationships become too cozy over long periods of time.
• B)strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from the same firm that it audits.
• C)that senior management and the boards of public companies be comfortable enough with the process through which funds are allocated and controlled,and outcomes monitored throughout the firm,to be willing to attest to their effectiveness and validity.
• D)the auditor must personally attest to the accuracy of the financial statements presented to shareholders and sign a statement to that effect.

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Definitions:

Job-Order Costing

An accounting method where costs are assigned to specific jobs or orders, used in manufacturing and service industries for unique or custom orders.

Overapplied Overhead

A scenario in which the overhead cost assigned to manufacturing exceeds the actual overhead expenses incurred.

Cost of Goods Sold

The total direct costs attributable to the production of goods sold by a company.

T-Accounts

A graphical representation used in accounting to show the debit and credit transactions affecting each aspect of a company's finances or accounts.