SOX Requires External Auditors to Independently Attest to the Effectiveness

question 23

True/False

SOX requires external auditors to independently attest to the effectiveness of internal financial controls, negating the need for an annual evaluation of internal controls and procedures for financial reporting.

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Definitions:

Number of Successes

In statistical experiments, the count of instances that meet a defined criterion for success.

Standard Error

A measure of the variability or dispersion of a sampling distribution, often used as an estimate of the accuracy of a sample mean.

Plus Four Method

A statistical method that adds four to the sample size and regards two successes and two failures in a binomial proportion confidence interval.

P-value

The probability of obtaining a test statistic at least as extreme as the one observed, assuming the null hypothesis is true; used to determine statistical significance.