Which of the Following Is Not a Requirement of a Company's

question 205

Multiple Choice

Which of the following is not a requirement of a company's top managers under the Sarbanes-Oxley Act?

• A)They must give an opinion about the effectiveness of the company's internal control over financial reporting.
• B)They must certify that they are primarily responsible for the company's internal controls over financial reporting.
• C)They must certify that the company's financial statements are fairly presented.
• D)They may deny responsibility for certain financial reporting matters if they are not knowledgeable about the proper accounting procedures for those transactions.

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Definitions:

Business Contracts

Legally binding agreements between two or more parties outlining the terms of business transactions.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing the residual value to shareholders after debts and liabilities have been settled.

Efficiency

The ability to accomplish or produce a desired result with the minimum amount of waste, effort, or inefficiency.

Trade-Off

A scenario where one characteristic or element is sacrificed to acquire a different characteristic or element.