The Report on Internal Control Required by the Sarbanes-Oxley Act

question 174

True/False

The report on internal control required by the Sarbanes-Oxley Act of 2002 may be prepared by either management or the company's auditors.

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Definitions:

Retained Earnings

Profits that a company has kept or retained rather than distributed to shareholders as dividends, which may be reinvested in the business.

Fiscal Year

A financial year used for accounting purposes, which in many countries is different from the calendar year.

Statement of Cash Flows

A report presenting the impact of variations in balance sheet positions and income on cash and cash equivalents, divided into operations, investments, and finance activities.

Financing Activities

Transactions that involve raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.