Which of the Following Statements Is Not True Regarding the Sarbanes-Oxley

question 27

Multiple Choice

Which of the following statements is not true regarding the Sarbanes-Oxley Act (SOX) ?

• A) The Act calls for increased oversight responsibilities for boards of directors.
• B) The Act has resulted in increased penalties for financial fraud by top management.
• C) The Act calls for decreased independence of outside auditors reviewing corporate financial statements.
• D) The Act is meant to decrease the likelihood of unethical corporate behavior.

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Definitions:

Straight-Line Method

A depreciation technique that allocates an equal amount of the asset's cost to each year of its useful life.

Residual Value

The estimated value of an asset at the end of its useful life.

Internally Generated Goodwill

The increase in value of a business due to factors like reputation, brand, customer base, and relationships that are developed internally over time and not acquired or purchased.

Intangible Asset

An asset that lacks physical substance and usually represents legal rights or competitive advantages (e.g., patents, trademarks, copyrights).