Which Is One of the Areas That the Sarbanes-Oxley Act

question 22

Multiple Choice

Which is one of the areas that the Sarbanes-Oxley Act of 2002 has made CEO's rely on forensic accountants heavily?

• A)CEO's must now certify their financial statements.
• B) CFO's must become qualified as forensic accountants.
• C) To become a CEO in a public company, their personal financial records must be certified by a forensic accountant.
• D) Both a and

---

Definitions:

Financial Capital

The funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.

Labor Supply Curve

A visual chart that displays how the wage rate correlates with the amount of labor that workers are prepared to offer.

Substitution Effect

The economic principle that as prices rise, consumers will replace more expensive items with less costly alternatives.

Income Effect

The impact that changes in either personal or economic income have on how much of a good or service is sought after.