Under the Sarbanes-Oxley Act of 2002, to Whom Does the Audit

question 31

Multiple Choice

Under the Sarbanes-Oxley Act of 2002, to whom does the audit committee report?

• A) Management of the corporation
• B) External auditor
• C) Board of directors
• D) Internal audit department

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Definitions:

Accounts Receivable

Receivable sums by a business from its patrons for items or services delivered without formal settlement.

Debt-Equity Ratio

A proportionality indicator for assessing how company assets are funded through debt and equity.

Total Debt Ratio

A financial metric that compares an organization's total liabilities to its total assets, used to assess its leverage and financial health.

Total Debt Ratio

A financial ratio that compares a company's total liabilities to its total assets, indicating the proportion of a company's assets financed through debt.