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

question 4

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:

Drawer

In financial transactions, the person who writes or the entity issuing a bill of exchange, cheque, or draft.

Internal Control

Processes designed to provide reasonable assurance regarding the effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws.

Safeguard

Measures or controls put in place to protect assets, including physical security and internal controls.

Signature Card

A document signed by an account holder at a financial institution that provides a specimen signature for the purpose of verifying future transactions.