Important Provisions of the Sarbanes-Oxley Act

question 362

Multiple Choice

Important provisions of the Sarbanes-Oxley Act:

• A)Approve corporate loans to directors of the company.
• B)Encourage the destruction of financial documents.
• C)Require the CEO and CFO of corporations to certify the accuracy of financial reports.
• D)Encourage outside CPA firms to deliver several services to their clients,including auditing services and consulting services.

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Definitions:

Issuing Entity

The company or governmental entity that offers securities for sale to investors.

Historical Average

A statistical measure that represents the average outcome of a set of data over a previous period.

Rate of Return

The increase or decrease in the value of an investment during a specific timeframe, represented as a proportion of the investment's initial outlay.

Commodity

A basic good used in commerce that is interchangeable with other commodities of the same type; common examples include grains, gold, beef, oil, and natural gas.