The Sarbanes-Oxley Act Requires Independent Auditors to

question 63

Multiple Choice

The Sarbanes-Oxley Act requires independent auditors to

• A) create flowcharts using specialized software.
• B) establish and maintain adequate controls in the client's information system.
• C) understand a client's system of internal controls.
• D) prepare and understand all types of system documentation.

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Definitions:

Compounded Quarterly

Refers to the process of calculating interest on an investment or loan where the interest is added to the principal amount four times a year.

Interest

Money paid at a particular rate for the use of borrowed funds or for delaying the repayment of a debt.

Ethnic Assimilation

The process by which individuals or groups of differing ethnic heritage are absorbed into the dominant culture of a society.

Praxis

The process by which a theory, lesson, or skill is enacted, embodied, or realized in the real world; often considered the practice or application of a learned skill.