The Passage of the Sarbanes Oxley Act

question 106

Multiple Choice

The passage of the Sarbanes Oxley Act

• A)made documentation skills even more important.
• B)requires public companies to prepare an annual internal control report.
• C)mandates that auditors must be able to prepare,evaluate and read documentation tools such as flowcharts.
• D)All of the above.

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Definitions:

Respondeat Superior

A legal doctrine making an employer (or master) liable for the torts of an employee (servant) that are committed within the scope of the employee’s employment.

Deferred Prosecution Agreements

Agreements between prosecutors and defendants whereby prosecution is postponed for a specified period provided the defendant meets certain conditions.

Non-prosecution Agreements

Legal agreements in which prosecutors agree not to file charges against an individual or company in exchange for cooperation or other conditions.

Monetary Penalties

Fines or financial charges imposed on individuals, organizations, or companies as punishment for breaking laws or regulations.