Which Is NOT a Provision of Sarbanes-Oxley

question 75

Multiple Choice

Which is NOT a provision of Sarbanes-Oxley?

• 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 may be sentenced to 25 years in prison.
• C) Public 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:

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life.

Factory Building

A physical structure designated for manufacturing processes and activities.

Absorption Costing

An accounting method that includes all manufacturing costs—direct materials, direct labor, and both variable and fixed overhead—in the cost of a product.

Variable Costing

An accounting method that only includes variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, with fixed overhead expenses treated as period costs.