The SOX Act Has Not Affected the Workload of Internal

question 5

True/False

The SOX Act has not affected the workload of internal auditors.

Understand the concept of revenues and how they affect equity.

Identify the obligations of a business and how they are represented in accounting.

Understand the basic financial statements and their purposes.

Recognize the concept and importance of tracking business transactions.

---

Definitions:

Property Rights

Legal rights to use, control, and dispose of land and property.

Legal Entity

An organization or structure that has legal rights and obligations, such as a corporation, partnership, or trust.

Doctrine of Marshaling Assets

A principle in equity that gives a junior creditor the right to request that senior creditors satisfy their claims from assets not pledged by the junior creditor, when possible.

Interest in the Partnership

Refers to a partner’s share or stake in both the assets and profits (or losses) of a partnership, often governed by a partnership agreement.