The Sarbanes-Oxley Act Provides That Whenever There Is a Restatement

question 74

Multiple Choice

The Sarbanes-Oxley Act provides that whenever there is a restatement of the company's financial condition,then the executives

• A) would be morally rather than legally culpable for the bonuses paid as a result of the incorrect financial statements.
• B) have to forfeit their salaries to cover for the amount of the bonuses paid to them on the basis of incorrect financial statements.
• C) would not be legally bound to return any bonuses paid as a result of the incorrect financial statements.
• D) must return the interest on any incentives payments as a result of the incorrect financial statements.
• E) must return any bonuses paid as a result of the incorrect financial statements.

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Definitions:

Penalty Kick

A method of restarting play in soccer, awarded for a foul within the penalty area, taken from the penalty spot against only the goalkeeper.

Kicker's Payoffs

A rephrased definition: The potential returns or outcomes that a participant in a game or negotiation, known as the "kicker," stands to gain.

Probability of Success

The likelihood of a particular outcome deemed favorable or meeting a set goal.

Probability of Failure

The likelihood or risk that a system, component, or process will fail to perform within an expected timeframe.