While the Sarbanes-Oxley Act (SOX)contains Many Provisions,the Overall Intent of the Legislation

question 15

Multiple Choice

While the Sarbanes-Oxley Act (SOX) contains many provisions,the overall intent of the legislation was to improve the accuracy of information given to both boards and to shareholders.SOX attempted to achieve this goal in all of the following ways,EXCEPT:

• A)overhauling incentives and independence in the auditing process.
• B)mandating the separation of the positions of CEO and Chairman of the Board.
• C)stiffening penalties for providing false information.
• D)forcing companies to validate their internal financial control processes.

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Definitions:

Factory Insurance

A type of insurance policy that provides coverage against losses or damages to a manufacturing facility and its operations.

Depreciation Expense

The allocation of the cost of tangible assets over their useful lives, reflecting the decrease in value over time.

Factory Equipment

Assets used in the production process to manufacture goods, typically considered as fixed assets in accounting.

Costs of Goods Manufactured Schedule

A detailed accounting that shows the total production costs for a company over a specific period, including direct labor, materials, and overhead.