Which of the Following Is Not a Violation of the Sarbanes-Oxley

question 34

Multiple Choice

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX) ? The management at Folding Squid Technologies

• A)asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process.
• B)hired the head of the external audit team as company CFO six months after completion of the previous audit.
• C)selected the company's Chief Financial Officer to chair the audit committee.
• D)did not mention to auditors that the company had experienced significant losses due to fraud during the past year.

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Definitions:

Original Investment

The initial amount of money spent to acquire an asset or start a business venture, not including subsequent expenses.

Retail Selling Price

The price at which goods are sold to the public, typically higher than the wholesale price to include profit margin.

Salary Allowances

Amounts allocated in addition to base salary, often to cover expenses such as housing, transportation, or for specific purposes set by the employer.

Capital Balance

The amount of money that a partner in a business has contributed or owns in the capital account.