Which of the Following Statements Is Most Correct

question 6

Multiple Choice

Which of the following statements is most correct?

• A) Sarbanes-Oxley requires the Securities Exchange Commission to audit public companies' financial statements.
• B) Sarbanes-Oxley made it illegal for company executives to trade on insider information.
• C) Sarbanes-Oxley requires the Chairman of the Board of Directors to sign and certify the company's financial statements.
• D) Sarbanes-Oxley requires the CEO sign and certify the company's financial statements.
• E) Sarbanes-Oxley requires company executives to disclose their fraudulent activities "in a timely and accurate manner."

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law passed in 2002 that introduced major changes to the regulation of financial practice and corporate governance to protect investors from fraudulent accounting activities by corporations.

Corporate Failures

Events where a company fails to remain viable, often due to financial mismanagement, market competition, or unethical behavior.

Financial Information

Data related to the financial status of an entity, including assets, liabilities, revenues, and expenses, used for analysis and decision-making.

CEO

Stands for Chief Executive Officer, the highest-ranking executive in a company, responsible for making major corporate decisions, managing overall operations, and acting as the primary point of communication between the corporate operations and the board of directors.