The Sarbanes-Oxley Act of 2002 Requires That the Audit Committee

question 71

Multiple Choice

The Sarbanes-Oxley Act of 2002 requires that the audit committee:

• A)Annually reassess control risk using information from the CPA firm.
• B)Be directly responsible for the appointment,compensation,and oversight of the work of the CPA firm.
• C)Require that the company's CPA firm rotate the partner in charge of the audit.
• D)Review the level of management compensation.

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Definitions:

Clayton-Bulwer Treaty

An 1850 agreement between the United States and Great Britain aiming to neutralize Central American territories and stipulate that neither nation would exclusively control a transoceanic canal.

Central American Canal

A concept referring to a canal through Central America, such as the Panama Canal, facilitating maritime trade between the Atlantic and Pacific Oceans.

Territorial Sovereignty

The right of a state to exercise supreme authority, including law enforcement and governance, within its territorial bounds.

Philippine Islands

An archipelagic country in Southeast Asia, consisting of more than 7,000 islands, known officially as the Republic of the Philippines.