The Sarbanes-Oxley Act requires independent auditors to
A) create flowcharts using specialized software.
B) establish and maintain adequate controls in the client's information system.
C) understand a client's system of internal controls.
D) prepare and understand all types of system documentation.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires independent auditors to understand a client's system of internal controls to properly assess the effectiveness of financial reporting. Creating flowcharts using specialized software, establishing and maintaining controls in the client's information system, and preparing and understanding all types of system documentation are not explicitly required by the act.

The Sarbanes-Oxley Act Requires Independent Auditors to