Which of the Following Is False Regarding the Sarbanes-Oxley Act

question 26

Multiple Choice

Which of the following is false regarding the Sarbanes-Oxley Act?

• A) The Act mandates the composition and authority of audit committees at public companies.
• B) The Act prohibits personal loans to executives.
• C) The Act requires corporations to disclose whether they have a code of ethics applicable to senior financial officers and, if not, to disclose why not.
• D) The Act gives the SEC the authority to prohibit unfit persons from serving as officers or directors of a public company for a period of five years.

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Definitions:

Test-Retest

A method of measuring the consistency of a test by administering the same test to the same subjects at two different points in time.

Focus Group

A qualitative research method involving a small group of people guided by a moderator to discuss and give feedback on products, perceptions, ideas, or services.

Obligated

Bound by a legal, moral, or ethical requirement to act in a certain way.

Storage of Data

The process of saving data in a secure location to ensure it is available for future access, analysis, and backup.