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:

Super Bowl

An annual championship game in American football that marks the end of the National Football League season, known for its high viewership and expensive advertising spots.

Sports Illustrated

A popular American sports magazine known for its extensive coverage of sports and athletes.

AARP The Magazine

A bi-monthly magazine targeted at people over 50, focusing on health, finance, and lifestyle, published by the American Association of Retired Persons (AARP).

Wasted Coverage

Expenditure on advertising or sales efforts that reach an audience not interested in the product, leading to inefficient spending.