Question

Question 6 of 1010.0 Points

Which costs have not increased for public companies related to implementation of Sarbanes-Oxley?

A. Accounting staff salaries

B. CEO salaries

C. Audit costs

Question 7 of 10

Which of the following is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management?

A. Accept responsibility for the effectiveness of the company’s internal control over financial reporting.

B. Evaluate the effectiveness of the company’s internal control over financial reporting using suitable control criteria.

C. Support its evaluation with sufficient evidence, including documentation.

D. Present a written assessment of the effectiveness of the company’s internal control over financial reporting as of the end of the company’s five most recent fiscal years.

Question 8 of 1010.0 Points

The COSO framework encompasses three major areas of internal controls, but Section 404 of Sarbanes-Oxley only requires corporate compliance relating to the reliability of a company’s financial reporting.

A. True

B. False

Question 9 of 1010.0 Points

Internal controls can be broken into two categories: 1) those relating to how transactions flow, and 2) those relating to employee integrity.

A. True

B. False

Question 10 of 1010.0 Points

The Sarbanes-Oxley Act was created in response to corporate accounting scandals in the early 21st century to reform the accounting industry, particularly in regards to auditing and internal controls.

A. True

B. False

Answer 1

Question 6- The costs that have not increased for public companies related to implementation of Sarbanes-Oxley are CEO- Salaries. Therefore the correct answer is Option B.

Question 7- Present a written assessment of the effectiveness of the company’s internal control over financial reporting as of the end of the company’s five most recent fiscal year is not one of the four specific responsibilities that PCAOB Auditing Standard No. 2 levies on company management. The rest three are the responsibilities that the PCAOB auditing standard NO.2 levies on company management. Therefore the correct answer is Option D.

Question 8- The COSO framework encompasses three major areas of internal controls, but Section 404 of Sarbanes-Oxley only requires corporate compliance relating to the reliability of a company’s financial reporting. This statement is true. Therefore the correct answer is Option A.

Question 9- ''Internal controls can be broken into two categories''- This statement is incorrect. Therefore the correct answer is Option B.

Question 10- The Sarbanes-Oxley Act was created in response to corporate accounting scandals in the early 21st century to reform the accounting industry, particularly in regards to auditing and internal controls. This statement is correct. Therefore the correct answer is Option A.

Please give a positive response if satisfied with the answer .HAPPY STUDYING & HAPPY CHEGGING!!