Has SOX Accomplished Its Intended Goal of Reliable Financial Reporting

question 6

Multiple Choice

Has SOX accomplished its intended goal of reliable financial reporting by public companies?

• A) Yes, as the CEO and CFO are certifying that financial statements contain no material misstatements.
• B) Maybe, as very few defendants have been charged with false certification, and fewer still have been convicted.
• C) Maybe, as laws are needed but they serve as only a minimum standard of ethical conduct and may not lead to ethical conduct.
• D) No, as the SEC has unsuccessfully sought to collected disgorgement of bonuses and other compensations of officers.

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Definitions:

Organic Product

A compound resulting from an organic reaction, often characterized by carbon-based structures.

Reaction

A procedure where compounds react to create new materials that have different characteristics.

Benzonitrile

An organic compound with the formula C7H5N, consisting of a benzene ring attached to a nitrile group.

Benzene

An aromatic hydrocarbon with a molecular formula C6H6, known for its ring structure consisting of six carbon atoms linked by alternating single and double bonds.