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.

---

Definitions:

Indirect Labor

Labor costs associated with workers who are not directly involved in producing goods but support the production process.

Fixed Overhead Costs

Expenses that do not change with the level of production or business activity, such as rent, salaries, and insurance.

Performance Report

A performance report is a document that compares actual results to planned or expected results, analyzing variances to understand performance and guide future decision-making.

Budgeted Amounts

planned financial values or targets for revenues, expenses, assets, liabilities, and equity accounts.