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:

Federal Unemployment Taxes

Taxes imposed by the federal government on employers to fund unemployment benefits for workers who have lost their jobs.

Gross Earnings

The total income earned by a company before deductions such as taxes and expenses.

Overtime Pay

Additional compensation paid to employees who work beyond the standard hours set by the company's policy or by law.

FICA Tax Rate

The combined rate for Social Security and Medicare taxes in the United States, paid by both employees and employers.