The Sarbanes-Oxley Act makes the audit committee the client of the external audit firm.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act does indeed make the audit committee the client of the external audit firm. This is intended to help ensure the independence, objectivity, and accountability of external auditors in their work. By shifting the focus of the audit firm to the audit committee rather than to the management team of the company being audited, the Act helps to prevent conflicts of interest that might arise if the audit firm and client had a more direct relationship.

The Sarbanes-Oxley Act Makes the Audit Committee the Client of the External