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03-02-2020
Social Studies

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The Sarbanes-Oxley Act requires public companies to ensure which of the following individuals have considerable experience applying generally accepted accounting principles (GAAP) for financial statements?

A. External auditors
B. Internal auditors
C. Chief Financial Officers
D. Corporate boards' audit committees

Respuesta :

adeshinaquadrioluseg adeshinaquadrioluseg

04-02-2020

Answer: External Auditors

Explanation: Sarbanes-Oxley bill was sponsored by U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley in 2002.

Sarbanes-Oxley ACT established that top management in public corporations must certify the accuracy of financial information individually. It stated that punishment will be allocated for fraudulent activity.

However,Sarbanes-Oxley ACT also establish increased oversight on role of boards of directors and the external auditors’ independence, when reviewing the corporate financial statements that shows the financial activities of the corporation.

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