The Sarbanes−Oxley Act requires management to certify that it has informed the auditor and audit committee of any
A. related party transactions.
B. significant deficiencies in business practices.
C. specific business or industry risk.
D. significant deficiencies in internal controls.
Whats the answer to this please
Answer is D. Significant deficiencies in internal controls.
The SOX act requires the management to certify that an effective internal control system has been implemented. Management based on recent evaluation of internal control over financial reporting should also disclose tor the company auditor and the audit committee of the company’s board of directors that
i) All significant deficiencies and material weaknesses in the design and operation of internal control over financial reporting
ii) Any fraud whether material or not, that involves management or other employees who have significant role in the company’s internal control over financial reporting.
There is no need for any certification on related party transactions, significant deficiencies in business practices or specific business or industry risk
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