Which of the Following Is Not a Requirement of a Company's

question 42

Multiple Choice

Which of the following is not a requirement of a company's external auditors under the Sarbanes-Oxley Act?

• A)They must give an opinion that the company maintained an effective internal control system over financial reporting.
• B)They must design and implement an effective information system design.
• C)They cannot perform any brokerage services for the company.
• D)All of these are requirements of a company's external auditors the Sarbanes-Oxley Act.

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Definitions:

Efficient Behavior

Efficient behavior refers to actions that maximize the desired outputs or results with the least amount of wasted effort or resources.

Insurance Industry

The sector of the economy that provides coverage against financial loss, including various types of insurance products and services.

Moral Hazard

The risk that one party to a contract can change their behavior to the detriment of another after the contract has been concluded.

Adverse Selection

A situation where sellers have information that buyers do not, or vice versa, often resulting in a market failure.