Which of the following is true of the Sarbanes-Oxley Act of 2002?
A)The act requires at least 30 percent of the businesses in the United States to be formed as S corporations.
B)The act requires a limited liability company to have a committee that consists of inside directors to oversee the firm's audits.
C)The act requires a limited liability company to be taxed like a proprietorship.
D)The act requires an S corporation to have more than 100 stockholders (members) and more than one type of stock.
E)The act requires a publicly-traded corporation to hire an external auditing firm that renders an unbiased opinion concerning the firm's financial statements.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 requires a publicly-traded corporation to hire an external auditing firm that renders an unbiased opinion concerning the firm's financial statements. Option A is incorrect because there is no provision that mandates a specific percentage of businesses to be formed as S corporations. Option B is incorrect because a limited liability company (LLC) is not required to have a committee of inside directors to oversee audits. Option C is incorrect because an LLC is taxed like a partnership or a corporation, depending on how it chooses to be taxed. Option D is incorrect because an S corporation is required to have 100 or fewer stockholders (members) and only one type of stock.

Which of the Following Is True of the Sarbanes-Oxley Act