Which of the Following Is $\underline{NOT}$ True Regarding the Passage of the Sarbanes-Oxley (SOX) Act?
A)SOX

question 43

Multiple Choice

Which of the following is $\underline{NOT}$ true regarding the passage of the Sarbanes-Oxley (SOX) Act?

• A)SOX more clearly defined auditor independence.
• B)SOX was intended to erode public confidence in the accounting profession due to recent scandals.
• C)SOX replaced peer review with inspection by the PCAOB.
• D)SOX implementation became the immediate focus of public companies and CPA firms.

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Definitions:

Market Value

The current price at which an asset or service can be bought or sold in a public market.

Stock Split

A corporate action that increases the number of shares outstanding by issuing more shares to current shareholders, typically to make the stock more affordable.

Stockholders' Equity

The portion of the balance sheet that represents the owners' interest in the corporation, calculated as total assets minus total liabilities.

Cash Dividends

Payments made by a corporation to its shareholders from its profits in the form of cash.