What Are the Requirements of Section 404 of SOX

question 46

Multiple Choice

What are the requirements of section 404 of SOX?

• A) It requires that senior management return any profits or bonuses resulting from stock sales during any period covered by financial statements that must later be restated.
• B) It requires that auditors do not perform any non-auditing tasks for the companies they audit.
• C) It requires that audit partners rotate every five years.
• D) It requires that senior management and the boards of public companies attest to the effectiveness and validity of their financial control process.

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Definitions:

Physical Distribution

All the activities necessary to move products from producers to customers—inventory control, transportation, warehousing, and materials handling.

Transportation

The shipment of products to buyers.

Warehousing

The design and operation of facilities to receive, store, and ship products.

Promotion Mix

The blend of different marketing methods used by a business, such as advertising, sales promotion, public relations, and direct marketing.