Which of the Following Is Not True Regarding the Sarbanes-Oxley

question 29

Multiple Choice

Which of the following is not true regarding the Sarbanes-Oxley Act?

• A)It attempts to force accountants to conform to regular accounting standards in preparing a firm's financial statements.
• B)It requires that only outside board members of a firm be on the firm's audit committee.
• C)It allows public accounting firms to offer nonaudit consulting services to an audit client whether the client's audit committee pre-approves the nonaudit services or not.
• D)It prevents members of a firm's audit committee from receiving consulting of advising fees or other compensation from the firm beyond that earned from serving on the board.

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Definitions:

Balancing the Budget

The process of adjusting income and expenditure so that they equal each other, resulting in neither a budget deficit nor a surplus.

Money Supply

The total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Expansionary Monetary Policy

A monetary policy approach used by central banks to increase the money supply and lower interest rates, aiming to stimulate economic growth.

Classical Economics

A school of thought in economics that emphasizes the importance of free markets, competition, and the self-regulating nature of economies.