Question

What is the duration specified by the Sarbanes-Oxley Act for auditors of public companies to retain audit documentation?

a) 2 years
b) 5 years
c) 7 years
d) 10 years

Answer 1

The duration specified by the Sarbanes-Oxley Act for auditors of public companies to retain audit documentation is 7 years.

Step-by-step explanation:

The duration specified by the Sarbanes-Oxley Act for auditors of public companies to retain audit documentation is 7 years (c).

The Sarbanes-Oxley Act, enacted in 2002, was a response to major accounting scandals that occurred in prominent corporations such as Enron, Tyco International, and WorldCom. It aimed to increase confidence in financial information provided by public corporations and protect investors from accounting fraud.