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:

Substitution Effect

The economic principle that as the price of a good rises, consumers will replace it with cheaper alternatives, whereas if its price falls, the good will be favored over more expensive substitutes.

Total Effect

Refers to the entire impact or outcome resulting from a specific action or series of actions, considering all direct and indirect consequences.

Substitution Effect

The change in consumption that occurs when a price change moves the consumer along a given indifference curve to a point with a new tangent and slope.

Income Effect

The change in consumption resulting from a change in real income, with income changes arising from changes in prices, wages, or other factors.