1. Which of the following is a requirement of the Sarbanes-Oxley Act of 2002?

ans

A second partner review and approval is required of audit reports.

The clients CEO and chair of the clients board of directors must certify the appropriateness of the financial statements and disclosures.

The auditor must assess the effectiveness of internal control and issue a report on its effectiveness.

The lead auditor and the reviewing partner on an engagement must be rotated off the audit every 7 years.

2. Which of the following groups within an entity is typically in the best position to perpetrate a material fraud?

ans

Directors.

Entry-level personnel.

Customers.

Management.