A Peril Is

question 51

Multiple Choice

A peril is

• A)a moral hazard.
• B)the cause of a loss.
• C)a condition that increases the chance of a loss.
• D)the probability that a loss will occur.

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Definitions:

Sarbanes-Oxley Act

A U.S. federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations, introducing stringent requirements for corporate governance and financial practices.

Legal Accountability

The requirement for individuals or organizations to be answerable to laws and regulations, facing consequences for legal violations.

Financial Accountability

The obligation of individuals or organizations to explain how their money was spent and to demonstrate that they have used resources efficiently and effectively.

Legal Auditing

A comprehensive review and assessment of an organization’s adherence to legal requirements and regulations.