The Sarbanes-Oxley Act Requires All Private Companies in the United

question 159

True/False

The Sarbanes-Oxley Act requires all private companies in the United States to maintain an internal control system.

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Definitions:

Negligent Employee

An employee who fails to exercise the degree of care considered reasonable under the circumstances, resulting in harm or loss.

Respondeat Superior

A legal doctrine holding an employer or principal legally responsible for the wrongful actions of an employee or agent, if such actions occur within the scope of employment or representation.

Implied Authority

The power of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

The power explicitly given to an agent or representative through a contract or agreement to perform certain actions.