What Are the Requirements of Section 404 of SOX

question 46

Multiple Choice

What are the requirements of section 404 of SOX?

• A) It requires that senior management return any profits or bonuses resulting from stock sales during any period covered by financial statements that must later be restated.
• B) It requires that auditors do not perform any non-auditing tasks for the companies they audit.
• C) It requires that audit partners rotate every five years.
• D) It requires that senior management and the boards of public companies attest to the effectiveness and validity of their financial control process.

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Definitions:

Buying Decisions

The process by which a consumer identifies a need, gathers information, evaluates choices, and makes a purchase.

Organizational Culture

Reflects the set of values, traditions, and customs that guide a firm’s employees’ behavior.

Geography

The study of places, the relationships between people and their environments, and how physical and human processes interact on Earth.

Autocratic Buying Center

A buying center in which one person makes the decision alone, though there may be multiple participants.