What Argument Can Be Made That SOX May Not Be

question 65

Multiple Choice

What argument can be made that SOX may not be effective in reducing fraud?

• A) It is not as stringent as international standards
• B) The SEC has many laws for many years that have not seemed to make much of a difference
• C) The penalties under Sarbanes-Oxley are especially stringent, so it may not be enforced
• D) Civil and criminal penalties are not effective in preventing financial fraud

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Definitions:

Financial Position

A snapshot of the resources, obligations, and net worth of an entity at a specific point in time.

Market Value

The current price at which an asset or service can be bought or sold in an open and competitive marketplace.

Loss Carry-Back

Using a year’s capital losses to offset capital gains of previous years.