Which of the Following Is Not a Change Introduced by the Sarbanes-Oxley

question 91

Multiple Choice

Which of the following is not a change introduced by the Sarbanes-Oxley Act?

• A)Management evaluates and reports on the effectiveness of internal control over financial reporting.
• B)Publically traded companies must have their financial statements audited.
• C)The company's board of directors is required to establish an audit committee comprised of independent directors.
• D)Public companies must have tip lines that allow employees to secretly submit concerns about questionable accounting or auditing practices.

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Definitions:

Price

The amount of money expected, required, or given in payment for something, often determined by factors like cost, demand, and competition.

Predatory Pricing

A firm’s practice of setting a very low price for one or more of its products with the intent to drive its competition out of business; illegal under both the Sherman Antitrust Act and the Federal Trade Commission Act.

Sherman Antitrust Act

A landmark U.S. legislation passed in 1890 that prohibits monopolistic business practices.

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition and deceptive practices in the marketplace.