Which of the Following Is NOT One of the Ways

question 32

Multiple Choice

Which of the following is NOT one of the ways that the Sarbanes-Oxley Act sought to improve the accuracy of information given to both boards and shareholders?

• A) by increasing the penalties to firms for providing false information
• B) by increasing the independence of auditors and clients
• C) by decreasing the non-audit fees that an auditor can receive from a client
• D) by forcing companies to audit financial statements they release

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Definitions:

Depreciation Expense

An accounting method allocating the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time due to wear and tear, usage, or obsolescence.

Translated

Converted from one language to another or, in financial terms, adjusted from one currency into another using the current exchange rate.

Remeasured

The process of adjusting the book value of a foreign subsidiary’s financial statements to reflect current exchange rates or the fair value of assets and liabilities.

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.