Identify a Key Aspect to Consider in Developing a Code

question 59

Multiple Choice

Identify a key aspect to consider in developing a code of ethics.

• A)Solicit input from employees from different departments,functions,and regions.
• B)Ensure that specific U.S.laws and regulations or those of specific countries are referenced,particularly for codes that will be distributed to employees in multiple regions.
• C)Ensure that employee group meetings are not carried out on a complete draft version.
• D)Make certain that the headings of the code sections are broad and not easily understood by all sections.
• E)Inform employees that the code of ethics has to be very generic and should not take into account every situation.

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Definitions:

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Accounting Standards

Rules and guidelines set by governing bodies that determine how financial transactions and statements are recorded and reported.

Independent Audit Firms

External organizations hired to examine an entity's financial records and statements to ensure accuracy and compliance with accounting standards.

Publicly Owned Companies

Corporations whose shares are traded on public stock exchanges, allowing public investing and ownership.