Under Sarbanes-Oxley, Chief Executive Officers and Chief Financial Officers Are

question 20

Multiple Choice

Under Sarbanes-Oxley, chief executive officers and chief financial officers are required to personally certify annual and quarterly SEC filings. Which of the following is an item that they must certify in their reports?

• A) They have disclosed to the audit committee any material control weakness.
• B) The financial statements were prepared in conformity with GAAP.
• C) The company's internal controls have prevented or detected all material instances of fraud during the last year.
• D) All of the above

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Definitions:

ROE

Return on Equity, a measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.

Repurchase Shares

The act of a company buying back its own shares from the marketplace, reducing the amount of outstanding stock.

Debt-Equity Ratio

A ratio showcasing the relative utilization of debt and equity in the financial structuring of a company’s assets.

Required Return

The minimum expected return by an investor for investing in a particular security or project, considering the risk associated with the investment.