Under the Sarbanes-Oxley Act,the Use of a Concurring Audit Partner

question 15

Multiple Choice

Under the Sarbanes-Oxley Act,the use of a concurring audit partner on an audit engagement for a company regulated by this Act is:

• A) Mandatory, under all circumstances
• B) Mandatory, only if the audit client has been cited by the SEC for failing to present its financial statements in conformity with GAAP during the preceding five-year period
• C) Recommended, but optional as long as the absence of a concurring partner is disclosed to the SEC
• D) Recommended, but optional as long as the absence of a concurring partner is disclosed as an integral part of the audit client's financial statements

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Definitions:

Diminishing Marginal Utility

The principle that as more of a good or service is consumed, the additional satisfaction or utility gained from consuming an additional unit declines.

Total Utility

The total satisfaction or benefit received by consuming a given total quantity of a good or service.

Utils

A theoretical unit of measurement used in economics to represent satisfaction or utility obtained by consuming goods and services.

Income Effect

Changes in economic or personal income and the resulting impact on how much of a product or service is sought after.