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 auditors.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 requires management of public companies to report on the effectiveness of their internal control over financial reporting. This requirement is intended to provide greater transparency and accountability to investors and the public. The PCAOB and the AICPA are entities involved in auditing and accounting standards, but they do not mandate the management report on internal control effectiveness. Auditors may rely on management's report, but they are not required to prepare it.

A Report on Internal Control Effectiveness by the Management Team