Question

Question 40 0.05 pts Which of the following is a key provision that resulted from the Sarbanes- Oxley Act? O Established an oversight board, the American Institute of Certified Public Accountants (AICPA) O Requires audit committees to be comprised of only members with financial expertise o Implements stronger independence rules for auditors O Requires only the CFO personally certify the financial statements and disclosures are accurate and complete

Answer 1

Question 40 - The following is a key provision that resulted from Sarbanes-Oxley Act:

Implements stronger independence rules for auditors. Audit partners are rotated after every 5 years and auditors are restricted from offering certain type of services to corporate client.

Question 29 - The objective of accrual basis accounting ensure that a company records events that change its financial statements in the periods in which the events occur, rather than only in the periods in which it receives or pays cash. The statement is True.

Question 30 - The party which is not instrumental in the development of financial accounting standards (GAAP) in the United States is Public Accounting Oversight Board (PCAOB). All other parties were instrumental in the development of GAAP.

Question 31 - The purpose of the objective of financial reporting is to prepare a balance sheet, an income statement, a statement of cash flows and a statement of owners' equity or stockholders' equity. The statement is true.

Question 34 - The Securities and Exchange Commission (SEC) relies on the American Institute of Certified Public Accountants (AICPA) to develop accounting standards. The statement is true. The SEC relies on the AICPA and FASB to develop and enforce accounting standards.