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.

---

Definitions:

Economic Mission

The purpose of an organization or a project related to achieving financial sustainability and economic objectives.

Stakeholders

Parties interested or involved in a company or project, including employees, customers, investors, and the community, among others.

Ownership Stake

A share or interest in a business or property, representing a portion of the ownership that confers rights and responsibilities.

Varied Group

A collection of individuals or items that differ from each other in specific ways, often used in the context of focus groups or market segments.