The Sarbanes-Oxley Act Was Passed in 2002 to Regulate the Accounting

question 90

Multiple Choice

The Sarbanes-Oxley Act was passed in 2002 to regulate the accounting profession.Although the act encompasses many aspects,what is one of the parts of the act?

• A)Requires rotation every ten years of the lead audit or coordinating partner and the reviewing partner on an audit
• B)Established the Public Company Accounting Oversight Board
• C)Requires all accounting firms to register with the SEC
• D)Prohibits public accounting firms from auditing SEC regulated companies
• E)Excludes certain industries from conducting business with public accounting firms

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Definitions:

Action Of Negligence

A legal claim made against someone for harm caused by their failure to act as a reasonable person would under similar circumstances.

Six Elements

Essential components required for something to be complete or legally binding; the term contextually varies, such as in contracts or scientific compositions.

Propensity

A natural inclination or tendency towards a particular behavior or action.

Keeper

An individual responsible for the care or management of something, such as a property, animal, or institution.