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:

Protistan Ancestors

Refers to the early eukaryotic organisms from which modern protists, and indirectly all eukaryotic life, are believed to have descended.

Cnidarians

A phylum of aquatic animals that includes jellyfish, corals, and sea anemones, characterized by a simple body structure with a single opening and a body wall made of two layers of cells.

Flagellated

Describes cells or organisms that have one or more whip-like appendages used for movement.

Stinging Cells

Specialized cells found in certain animals like jellyfish that can inject a toxin into predators or prey.