According to the Sarbanes-Oxley Act,which of the following items is the independent auditor required to report to the audit committee?
A)Materiality limits for audit testing.
B)Critical accounting policies and practices.
C)The extent of audit testing in high-risk accounts.
D)A list of probable fraud errors identified in audit planning.

Question

Quizplus · Accepted Answer

According to Section 103 of the Sarbanes-Oxley Act, the independent auditor must report critical accounting policies and practices to the audit committee. This includes significant estimates and judgments made by management in preparing the financial statements. The other options listed are not required to be reported specifically to the audit committee under the Act.

According to the Sarbanes-Oxley Act,which of the Following Items Is