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:

Progressive Tax

A tax system where the tax rate increases as the taxable amount increases, typically aimed at redistributing wealth more equitably.

Value-Added Tax (VAT)

A type of tax that is applied incrementally at each stage of production and distribution on the value added to goods and services.

Retail Sales Tax

A tax on the sale of goods and services that is usually calculated as a percentage of the purchase price and collected by the retailer.

Payout Rates

The percentage of earnings or profits that a company distributes to its shareholders as dividends.