The Sarbanes-Oxley Act Has Impacted Canadian Companies in the Following

question 36

Multiple Choice

The Sarbanes-Oxley Act has impacted Canadian companies in the following way.

• A)More companies are using third party accounting services.
• B)Public companies are borrowing exclusively through Canadian banks.
• C)Public companies are relying solely on internal auditors to guarantee financial statements.
• D)Public companies traded on U.S. stock exchanges must abide by the Sarbanes-Oxley Act.

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Definitions:

Government Spending

The total expenditure by the government on goods and services, including salaries of public servants, public investments, and social services.

Tax Increases

A rise in the rate of taxes imposed by governments on individuals or businesses.

Inflationary Gap

A situation where the total demand for goods and services exceeds the total supply at current prices, leading to upward pressure on prices and inflation.

Full Employment GDP

The level of gross domestic product achieved when the economy is fully employing all available labor and resources, maximizing output.