Which of the Following Is Not a Requirement of the Sarbanes-Oxley

question 181

Multiple Choice

Which of the following is not a requirement of the Sarbanes-Oxley Act?

• A)A company's annual report must include an internal control report.
• B)External auditors can no longer provide human resource services.
• C)External auditors can no longer provide brokerage services.
• D)An internal control system that guarantees financial accuracy must be established.

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Definitions:

Standard Quantity

The preset amount of materials or inputs theoretically required to produce a single unit of product under normal operating conditions.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Direct Materials

Raw materials that are directly traceable to the finished product and constitute a significant part of its costs.

Variable Overhead Spending Variance

The difference between actual variable overhead costs incurred and the expected (standard) costs based on the actual level of production activity.