A report on internal control effectiveness by the management team of public companies is required by
A) The Sarbanes-Oxley Act of 2002.
B) The PCAOB.
C) The AICPA.
D) The ASB.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 requires public companies to file a report on internal control effectiveness, known as the Management Assessment of Internal Controls (MAIC), in order to increase transparency and accountability in financial reporting. The PCAOB is responsible for auditing the effectiveness of internal controls, while the AICPA and ASB provide guidance and standards for auditors.

A Report on Internal Control Effectiveness by the Management Team