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In Response to Accounting Scandals in 2002,the Federal Government Passed

question 227

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In response to accounting scandals in 2002,the federal government passed legislation requiring,among other things,that auditors disclose any potential conflicts of interest.What is the name of this legislation?


Definitions:

Stop-Payment Order

An order by a drawer that instructs the drawee bank not to pay an issued check.

UCC

The Uniform Commercial Code (UCC) is a set of laws that provide legal standards and regulations for commercial transactions and dealings across the United States.

ATM Machine

An Automated Teller Machine is an electronic banking outlet that allows customers to complete basic transactions without the need for a branch representative.

Safe Harbor Defense

A legal provision that shields companies from liability under certain conditions if they can prove they acted in good faith or complied with specified regulations.

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