Under section 404 of the Sarbanes-Oxley Act, auditors are required to:
A) Attest to and report on the effectiveness of the client's internal controls.
B) Establish and maintain internal controls for audited companies.
C) Advise management on its preparation of the Report on Internal Controls.
D) Evaluate the company's internal control system periodically throughout the year.
E) All of the answers are correct.

Question

Quizplus · Accepted Answer

Under section 404 of the Sarbanes-Oxley Act, auditors are specifically required to attest to and report on the effectiveness of the client's internal controls over financial reporting. This does not include establishing or maintaining internal controls for the company, advising management on its preparation of the report, or periodically evaluating the company's internal control system throughout the year.

Under Section 404 of the Sarbanes-Oxley Act, Auditors Are Required