Johanna Is the CFO of Para Corp

question 69

Essay

Johanna is the CFO of Para Corp.and is a year from retirement.In order to guarantee herself a very substantial bonus and to boost her retirement package,she knowingly certifies false financial reports that make the company appear to be much more profitable than it really is.She further takes steps to ensure that the financial report does not get reviewed through internal controls maintained by Para Corp.Under provisions of the Sarbanes-Oxley Act,what are the possible penalties that may be imposed when her actions are discovered?

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Definitions:

Annum

A term denoting a year or a yearly period, often used in financial contexts to refer to annual amounts or periods.

Simple Interest

Interest calculated only on the principal amount, not on the interest that has been added over time.

Repay

The act of paying back money that was borrowed from a person or institution.

Term Deposit

A fixed-term investment held at a financial institution where money can be invested for a certain period of time, earning a predetermined interest rate.