Which of the Following Is the "Signature" Clause of the Sarbanes-Oxley

question 37

Multiple Choice

Which of the following is the "signature" clause of the Sarbanes-Oxley Act?

• A) CEOs and CFOs of publicly-traded firms must vouch for the veracity of the firm's financial statements.
• B) Corporate board audit and compensation committee members must come from outside directors.
• C) Companies may not make loans to their officers and directors.
• D) Companies must test their internal financial controls against fraud.

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Definitions:

Third-Party

An entity or individual not directly involved in a transaction or agreement but who may be affected by it or have an interest in it.

Honoring Checks

The act of accepting a check as payment and processing it as directed by the terms written on the check.

Drawer-Depositor

An individual or entity that has the authority to write and deposit checks within a banking relationship.

Overdraft

refers to a situation where an account balance goes below zero because more money has been withdrawn from the account than was available.