Which of the Following Statements Is True of the Sarbanes-Oxley

question 10

Multiple Choice

Which of the following statements is true of the Sarbanes-Oxley Act?

• A)Accounting firms are allowed to provide both auditing services and a full range of consulting services to their public company clients.
• B)Those who commit securities fraud must be sentenced to 10 years in prison.
• C)All private and foreign companies must issue an internal control report evaluated by an outside auditor.
• D)Auditors of public companies are under the scrutiny of the Public Company Accounting Oversight Board.

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Definitions:

Fixed Cost

Expenses that do not change with the volume of production or sales, such as rent, salaries, and insurance premiums.

Activity Level

The activity level is a measure of volume of work or operations, which could influence costs and operational efficiency within a business.

Activity Index

A measure used to estimate the amount of activity, effort, or work involved in a process or project.

Variable

An element or factor that can change or vary, often used in mathematical modeling or statistical analysis to represent changeable components.