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:

Planning Horizon

The future time period for which plans, strategies, and decisions are made, varying in length depending on the goals and nature of the planning.

Forecasting Errors

Discrepancies between predicted and actual demand, often leading to inventory mismanagement.

Safety Capacity

The extra capacity created within a system to accommodate unexpected demand or to compensate for potential system failures.

Aggregate Decisions

Aggregate Decisions are strategic choices made at the corporate or strategic business unit level, focusing on overall capacity, investment, and long-term resource allocation.