Which of the Following Is a Requirement of the Sarbanes-Oxley

question 147

Multiple Choice

Which of the following is a requirement of the Sarbanes-Oxley Act?

• A) An outside auditor must evaluate the client's internal controls and report on the internal controls as part of the audit report.
• B) The Public Company Accounting Oversight Board must conduct audits of public companies.
• C) The accounting firm that audits a public client must also provide consulting services for the same client.
• D) The Public Company Accounting Oversight Board must create new accounting standards.

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Definitions:

Investment Revenue

Income generated from investing financial assets, including dividends, interest, and capital gains.

Gross Profit

The financial metric determined by subtracting the cost of goods sold from revenue, representing the profit a company makes after accounting for the costs directly associated with production.

Gross Profit

The amount remaining from sales revenue after subtracting the cost of products sold, prior to removing expenses for overhead, wages, taxes, and interest.

Operating Expenses

Costs incurred during the normal operations of a business, such as sales and marketing, administration, and cost of goods sold.