Which Is Not Affected by the Sarbanes-Oxley Act of 2002

question 117

Multiple Choice

Which is not affected by the Sarbanes-Oxley Act of 2002?

• A)The auditing function of the firm.
• B)The structure of the employee pension plan for non-executives.
• C)Executive compensation packages.
• D)The ability of the CEO to borrow money from the firm.

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Definitions:

Journal Adjustment

Entries made in the accounting journals to correct or update financial records.

Equity Recognition

The process of including equity investments in the financial statements of an investor, reflecting ownership interest in a company.

Revaluation Surplus

An increase in value of an asset, reflected in the books of account, over its previously recorded net book value.

Adjustment Recognition

The process of incorporating adjustments into financial statements for more accurate representation of financial positions or to reflect specific accounting standards.