The Sarbanes-Oxley Act of 2002 Places Full Responsibility on the Board

question 79

True/False

The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system.SOX places more responsibility on all managers (not just accountants)for the accuracy of the reporting system.SOX also places additional responsibilities on the boards of directors and external auditors to reduce the opportunity for errors and fraud.

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Definitions:

Ex-Dividend Date

Date two business days before the date of record, establishing those individuals entitled to a dividend.

Market Value

The current quoted price at which an asset or a company can be bought or sold on the open market.

Declaration Date

Date on which the board of directors passes a resolution to pay a dividend.

Dividend

A portion of a company's earnings that is paid to shareholders, usually on a regular basis.