Which Act Requires Publicly Traded Companies to Assess the Effectiveness

question 66

Multiple Choice

Which act requires publicly traded companies to assess the effectiveness of their internal controls and have an independent CPA firm audit this assessment?

• A)Sarbanes-Oxley Act of 2002
• B)The GAAP Act of 1932
• C)Wheat Commission
• D)Security Exchange Commission Act of 1934

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Definitions:

Supplies

Items used in the operation of a business or in the production of goods and services that are typically consumed within a short period.

Purchased

Acquisition of goods or services in exchange for money or its equivalent.

Required

Mandatory or necessary conditions or items specified for a particular purpose or activity.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.