Which of the Following Are Penalties Under the Sarbanes-Oxley Act

question 37

Multiple Choice

Which of the following are penalties under the Sarbanes-Oxley Act for the willful violation of the section requiring the retention of working papers?

• A) There are no penalties because the Sarbanes-Oxley Act does not require the retention of working papers.
• B) Accountants may be fined but not imprisoned.
• C) Accountants may be fined or imprisoned for up to ten years, but not both.
• D) Accountants may be fined, imprisoned for up to ten years, or both.
• E) Accountants may be fined, imprisoned for up to five years, or both.

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Definitions:

Uncertain Benefits

Advantages or gains that are not guaranteed or clearly defined, often associated with investments or business ventures.

Physical Form

Refers to the tangible structure or configuration of an object, particularly indicating its real, material state as opposed to a digital or conceptual form.

Retained Earnings

The cumulative net income of a company that is retained within the company for reinvestment, rather than being paid out as dividends.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, preparing the books for the next period.