If a Company Must Restate Its Financial Statements,per the Sarbanes-Oxley

question 67

Multiple Choice

If a company must restate its financial statements,per the Sarbanes-Oxley Act,the

• A) CEO and CFO must relinquish any bonus or incentive-based compensation
• B) CEO and CFO must resign
• C) CFO is prosecuted for falsifying information while CEO is charged a penalty
• D) CEO must find a new board of directors for the company

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Definitions:

Agency Costs

The costs associated with resolving conflicts of interest between stakeholders in a corporation, typically between management and shareholders.

Background Checks

The process of investigating an individual's or organization's history, typically used by employers or landlords to verify qualifications or trustworthiness.

Time Clocks

Devices or systems used to record the beginning and end of employees' work hours for payroll and compliance purposes.

Centralized Decision Making

A process where all key decisions within an organization are made by a central group or individual, with little or no input from lower-level staff.