E4-2 Below are several statements about the Sarbanes-Oxley Act (SOX). SOX represents legislation...
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E Below are several statements about the SarbanesOxley Act SOX SOX represents legislation passed in response to several accounting scandals in the early s The requirements outlined in SOX apply only to those companies expected to have weak internal controls or to have manipulated financial statements in the past. Section of SOX requires both company management and auditors to document and assess the effectiveness of a company's internal control processes that could affect financial reporting. Severe financial penalties and the possibility of imprisonment are consequences of fraudulent misstatement. With the establishment of SOX, management now has primary responsibility for hiring an external audit firm. The lead auditor in charge of auditing a particular company must rotate off that company only when occupational fraud is suspected. Required: State whether the answer to each of the statements is true or false. 
E Below are several statements about the SarbanesOxley Act SOX
SOX represents legislation passed in response to several accounting scandals in the early s
The requirements outlined in SOX apply only to those companies expected to have weak internal controls or to have manipulated
financial statements in the past.
Section of SOX requires both company management and auditors to document and assess the effectiveness of a company's internal
control processes that could affect financial reporting.
Severe financial penalties and the possibility of imprisonment are consequences of fraudulent misstatement.
With the establishment of SOX, management now has primary responsibility for hiring an external audit firm.
The lead auditor in charge of auditing a particular company must rotate off that company only when occupational fraud is suspected.
Required:
State whether the answer to each of the statements is true or false.
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