Under SOX, the external auditors must now report to:
A)the management of the company being audited.
B)an audit committee.
C)the Securities and Exchange Commission.
D)the Public Company Accounting Oversight Board.

Question

Quizplus · Accepted Answer

Under SOX, external auditors must report to the company's audit committee, which is a subcommittee of the board of directors. This is to ensure independence and provide an additional level of oversight for the auditing process. While the SEC and PCAOB have oversight responsibilities as well, the direct reporting requirement is to the audit committee.

Under SOX, the External Auditors Must Now Report To