Which of the following is a requirement under the Sarbanes-Oxley Act?
A)Financial statements must be audited by a Big Four accounting firm.
B)Management must issue a report that indicates whether the financial statements are free of error.
C)Management must conduct a review of the company's internal control system.
D)Background checks must be performed on all employees.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires management to conduct a review of the company's internal control system to ensure that financial statements are accurate and reliable. This is known as the Section 404 requirement. While A and B may be good practices, they are not requirements under the Act. Background checks on all employees are also not explicitly required by the Act.

Which of the Following Is a Requirement Under the Sarbanes-Oxley