The Sarbanes-Oxley Act of 2002
A) is not required for foreign firms registered on US exchanges.
B) prohibits real time financial statements on the Internet.
C) is also required for IFRS
D) requires annual internal control report that is assessed by an independent auditor.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 requires an annual report on internal control, which must be assessed by an independent auditor. This is aimed at strengthening corporate governance and preventing financial fraud. Option A is incorrect because foreign firms registered on US exchanges are also subject to the act's provisions. Option B is incorrect because the act does not prohibit real-time financial statements on the Internet. Option C is incorrect because the act only applies to US GAAP, not IFRS.