Which of the Following Statements About the Sarbanes-Oxley Act Is

question 27

Multiple Choice

Which of the following statements about the Sarbanes-Oxley Act is incorrect?

• A) The act was passed in 1996.
• B) Because the act is complex, compliance is more expensive and time consuming for corporate management.
• C) Because of the act, the SEC was required to establish a federal oversight board.
• D) Because of the act, a corporation's chief executive and financial officers must certify financial reports.
• E) The act strengthened the penalty for destroying financial documents related to an audit.

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Definitions:

Principal

The original amount of money invested or loaned, before interest.

Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods.

Semi-annually

Occurring twice a year or every six months.

Compounded

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, leading to an increase in interest earnings over time.