Which One of the Following Is Not a Provision in the Sarbanes-Oxley

question 121

Multiple Choice

Which one of the following is not a provision in the Sarbanes-Oxley Act?

• A)Public companies must have their internal control evaluated by the external auditor.
• B)Accounting firms cannot both audit and provide certain consulting services to a client.
• C)Violators will receive a reprimand and further accounting training.
• D)Auditors of public companies are overseen by an oversight board.

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Definitions:

Treasury Stock

Shares that were issued and subsequently reacquired by the company, hence are not considered when calculating earnings per share or dividends.

Earnings Per Share

A financial metric that indicates the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Mandatorily Redeemable

Financial instruments or securities that the issuer is obligated to buy back or redeem at a predetermined price and date.

Equity

Equity refers to the ownership interest held by shareholders in a corporation, represented by their shares of the company's stock.