The Sarbanes-Oxley Act of 2002 Dramatically Changed the Daily Work

question 36

Multiple Choice

The Sarbanes-Oxley Act of 2002 dramatically changed the daily work of financial accountants and auditors because it

• A) expanded the scope of the audit beyond financial information
• B) required that organizations work with their auditors to design systems of internal control
• C) required that external auditors report on the effectiveness of an organizations system of internal control
• D) expanded the opportunities for auditors to engage in consulting activities with their audit clients

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Definitions:

Self-Fulfilling Prophecy

A situation where an individual's expectations or the expectations of others lead to behaviors that cause those expectations to come true.

Ingroup/Outgroup Bias

The tendency to favor members of one's own group (the ingroup) over those in other groups (the outgroup), often leading to prejudice and discrimination.

Self-Fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Stereotyping

Involves assigning a set of characteristics to people based on their membership in a particular group or category, often leading to oversimplified and unfair judgments.