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:

Ceteris Paribus

A Latin phrase meaning 'all other things being equal', used in economics to isolate the effect of one variable change.

Payroll Taxes

Levies placed on both employers and employees, determined by a portion of the wages that businesses disburse to their workforce.

High-Income Earners

Individuals or households that have an income significantly above the average or median level.

Low-Income Earners

Individuals or households that earn less than the median income level, often qualifying them for certain government assistance programs.