The Most Significant Change in the Restructuring of Governance Structure

question 69

Multiple Choice

The most significant change in the restructuring of governance structure due to the Sarbanes-Oxley Act is the

• A) Elimination of the external board members
• B) Heightened role of corporate internal auditors
• C) Removal of CFO from any overseeing role related to final financial statements
• D) Creation of inside corporate accountants reporting to external accounting firms

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Definitions:

Face Value

The nominal value printed on a financial instrument such as a bond or stock certificate, representing its legal value.

Semiannually

Occurring twice a year or every six months.

Bond Premium

The amount by which the market value of a bond exceeds its principal amount or par value, typically occurring when the bond's interest rate is higher than current market rates.

Straight-Line Method

A depreciation method that allocates an equal portion of the cost of a fixed asset to each accounting period over its useful life.