Which of the Following Is NOT a Provision of Sarbanes-Oxley

question 106

Multiple Choice

Which of the following is NOT a provision of Sarbanes-Oxley Act?

• A)Created an independent auditing oversight board.
• B)Increased penalties for corporate wrongdoers.
• C)Forced faster and more extensive financial disclosure.
• D)Created avenues of recourse for aggrieved shareholders.
• E)Required investment analysts' compensation to be a function of the quality and accuracy of research they produce.

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Definitions:

Impairment Loss

A reduction in the recoverable value of an asset below its carrying amount, requiring the asset's value to be written down.

Effective Tax Rate

The mean rate at which a person or business is charged with taxes, determined by dividing the total amount of taxes paid by the amount of income that is subject to tax.

Cost Method

A method of accounting for investments where the investment is recorded at cost and only dividend income is recognized.

Goodwill Impairment

A decrease in the value of goodwill, indicating that the acquired company is not performing as expected.