For compliance with SOX,assessed risk for business processes must be clearly
A) tested and reported to FASB.
B) documented on form Circular E and submitted to the SEC.
C) tested and checked for material irregularities.
D) documented and controls selected for testing and evaluation.

Question

Quizplus · Accepted Answer

For compliance with SOX, assessed risk for business processes must be documented and controls selected for testing and evaluation. This means that the risk assessments must be clearly documented and controls must be chosen for testing and evaluation to ensure effective internal controls over financial reporting. Testing and checking for material irregularities may be part of the process, but it is not the main requirement for documenting assessed risks. Testing and reporting to FASB or submitting to the SEC on form Circular E are irrelevant.

For Compliance with SOX,assessed Risk for Business Processes Must Be