Which of the Following Is Not a Violation of the Sarbanes-Oxley

question 33

Multiple Choice

Which of the following is not a violation of the Sarbanes-Oxley Act (SOX) ? The management at Folding Squid Technologies

• A) asked their auditors to make recommendations for the redesign of their information technology system and to aid in the implementation process.
• B) hired the manager from the external audit team as company CFO twelve months after the manager had worked on the audit.
• C) selected the company's Chief Financial Officer to chair the audit committee.
• D) did not mention to auditors that the company had experienced significant losses due to fraud during the past year.

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Definitions:

Net Present Value

A calculation used to determine the value of an investment by estimating future cash flows and discounting them to their present value.

Flotation Costs

Expenses incurred by a company when it issues new securities, including underwriting fees, legal fees, and registration fees.

Debt

Debt is an amount of money borrowed by one party from another, to be repaid usually with interest.