The Sarbanes-Oxley Act Includes Several Significant Reforms That Affect the Auditing

question 53

True/False

The Sarbanes-Oxley Act includes several significant reforms that affect the auditing profession,but it did not reduce an audit firm's ability to provide non-audit services to its audit clients.

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Definitions:

Chart of Accounts

An organized list of all accounts in the general ledger of a company, each with a unique account number, used for recording transactions and preparing financial statements.

Book of Original Entry

A preliminary accounting record where transactions are first recorded; also known as a journal.

Chart of Accounts

An organized list of all the accounts used in a company's general ledger, categorized into assets, liabilities, equity, revenues, and expenses.

Ledger

A comprehensive collection of accounts where financial transactions are recorded, categorized, and summarized; an essential part of the accounting system.