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

question 8

Multiple Choice

Which of the following is not a provision of the Sarbanes-Oxley Act of 2002?

• A) The chief executive officer and the chief financial officer are jointly responsible for establishment and enforcement of internal controls.
• B) Companies are required to report on the effectiveness of their internal controls.
• C) The company's external auditor is charged with the ultimate responsibility for the accuracy of the company's financial statements and accompanying footnotes.
• D) The company's external auditors are required to attest to the accuracy of the internal controls report.

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Definitions:

Mutual Agency

A principle in partnership where each partner is both an agent and a principal, permitting each partner to bind the partnership in contract within the scope of the partnership’s business.

Unlimited Liability

A legal obligation where an individual's responsibility for debt extends beyond what they've invested in a business, potentially affecting personal assets.

Partners' Capital Statement

A financial report that shows the changes in each partner's equity in a partnership over a period of time.

Income Ratio

A financial metric comparing different aspects of income, such as net profit to sales, to assess profitability or performance.