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The supply manager of your organization just underwent an audit of internal processes. She is now preparing for an audit which provides assurance of the reliability of financial reporting. This audit is required by whom?
A. The Generally Accepted Accounting Principles (GAAP)
B. International Organization for Standardization (ISO)
C. The Sarbanes Oxley Act (SOX)
D. US Department of Commerce
Answer: C
Explanation:
The supply manager of your organization just underwent an audit of internal processes. She is now preparing for an audit which provides assurance of the reliability of financial reporting required by the Sarbanes Oxley Act (SOX). The Generally Accepted Accounting Principles (GAAP) are a set of accounting guidelines. The International Organization for Standardization performs third part auditing not required to be financial. The US Department of Commerce does not require audits on public organizations financial accounting.
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