Which of the Following Statements Is Most Correct

question 16

Multiple Choice

Which of the following statements is most correct?

• A) Sarbanes-Oxley established a new Federal agency, the Public Company Auditing Board, to audit public companies' financial statements.
• B) Sarbanes-Oxley prohibited investment banks from allowing their analysts to make recommendations on stocks the investment banks do business with.
• C) Sarbanes-Oxley requires that either the CEO or CFO hand-deliver the annual and quarterly financial statements to the SEC.
• D) Sarbanes-Oxley requires that auditors maintain extensive records to document that their consulting and auditing services for a given company are not conflicting.
• E) Sarbanes-Oxley prohibits auditors from providing consulting services to the companies they audit.

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Definitions:

British Pound

The recognized monetary unit of the United Kingdom, also referred to as GBP (Great Britain Pound).

London Interbank Offer Rate

An interest rate average calculated from estimates submitted by the leading banks in London, used as a benchmark for lending rates worldwide.

Overnight Eurodollar Loans

Short-term loans between banks that use US dollars held in banks outside the United States, to be repaid the next business day.

Relative Purchasing Power

A concept that compares the ability of entities to buy the same goods or services with a specific amount of currency in different environments or time periods.