The Sarbanes-Oxley Act

question 30

Multiple Choice

The Sarbanes-Oxley Act:

• A)makes the officers of a public corporation personally responsible for the firm's financial statements.
• B)requires all corporations to fully disclose its financial dealings to the general public.
• C)places the responsibility for a firm's financial statements solely on the chief financial officer.
• D)requires that the board of directors be solely responsible for the firm's financial dealings.
• E)places total responsibility for the financial statements of a firm on the auditor who certifies the statements.

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Definitions:

Insurer's Liability

Represents the maximum amount a insurance company is obligated to pay to the insured under the terms of an insurance policy.

Insured

A person or entity covered by an insurance policy, receiving protection against specified risks in exchange for premium payments.

Proof of Loss

A formal statement made by a policyholder to an insurance company detailing a claimed loss's circumstances and amount.

Fire Insurance Policy

A contract between an individual or entity and an insurance company, offering protection against losses or damage from fire in exchange for premium payments.