The Sarbanes-Oxley Act Requires the CPA Firm to Rotate the Audit

question 105

Multiple Choice

The Sarbanes-Oxley Act requires the CPA firm to rotate the audit partner off of the audit engagement every ________ year(s) .

• A)three
• B)four
• C)five
• D)one

---

Definitions:

Average Fixed Cost

The fixed expenses of a company divided by the number of units produced, showing cost per unit.

Average Variable Cost

Average variable cost is the total variable costs of production divided by the quantity of output produced; it changes with production volume.

Marginal Cost

The expenditure required to produce one more unit of a product or service.

Incremental Cost

The additional cost associated with producing one more unit of a product or service.