The Primary Change Made by the Sarbanes-Oxley Act Which Affects

question 45

Multiple Choice

The primary change made by the Sarbanes-Oxley Act which affects the practice of public accounting is:

• A)Public accounting firms may nolonger provide any actuarial services.
• B)Accounting firms may nolonger offer tax shelters.
• C)Auditors may never dotax compliance work for their clients.
• D)Public accounting firms may provide some nonaudit services totheir audit clients if the services are approved in advance by an audit committee.

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Definitions:

Bad News

Information that is unwelcome, disappointing, or distressing, the delivery of which requires sensitivity and often necessitates careful communication strategies.

Rational Decision Making

A structured or systematic approach to decision making that follows a logical, step-by-step process of identifying and evaluating alternatives and selecting the most favorable outcome from among them.

Recognizing Problem

The process of identifying and acknowledging an issue or obstacle that impedes goal achievement.

Implementing Solution

The process of putting into action or executing strategies, plans, or actions designed to address problems or achieve objectives within an organization or system.