The Sarbanes-Oxley Act (SOX)forced Companies to Validate Their Internal Financial

question 70

Multiple Choice

The Sarbanes-Oxley Act (SOX) forced companies to validate their internal financial control processes by:

• A)putting strict limits on the amount of non-audit fees (consulting or otherwise)that an accounting firm can earn from a firm that it audits.
• B)requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports.
• C)requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them.
• D)requiring senior management and the boards of public companies to validate and certify the process through which funds are allocated and controlled.