Which additional report is required of independent auditors since the passage of the Sarbanes-Oxley Act in 2002?
A)A report assessing the probability that the company will remain in business
B)A report attesting to management's assessment of internal control
C)A report assessing the market value of the company's current stock price
D)A report assessing the competency of the company's board of directors

Question

Quizplus · Accepted Answer

The additional report required by independent auditors since the passage of the Sarbanes-Oxley Act is a report attesting to management's assessment of internal control. This report, known as the Management's Assessment of Internal Control report, evaluates the effectiveness of a company's internal control over financial reporting. The other options listed are not required reports under the Sarbanes-Oxley Act. A report assessing the probability that the company will remain in business is not required, but auditors have a responsibility to assess whether there is substantial doubt about a company's ability to continue as a going concern. A report assessing the market value of the company's current stock price is also not required, as the auditor's role is to provide assurance on the financial statements, not the market value of a company's stock. Similarly, a report assessing the competency of the company's board of directors is not required of auditors under the Sarbanes-Oxley Act.

Which Additional Report Is Required of Independent Auditors Since the Passage