All of the Following Are Provisions of the Sarbanes-Oxley Act

question 95

Multiple Choice

All of the following are provisions of the Sarbanes-Oxley Act except:

• A)The law states that the CEO and the CFO are responsible for signing their company's financial statements and indicating that the financial statements do not omit material information.
• B)The law requires the company's auditor must attest to management's assessment of internal controls.
• C)The law created the Public Company Accounting Oversight Board (PCAOB),which
• Oversees auditors of public companies.
• D)The law requires that lower-level managers submit to lie-detector tests if fraud is suspected.

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Definitions:

Net Operating Income

A company's operating profit after subtracting operating expenses from revenue, excluding non-operating activities like taxes and interest.

Break-even Point

The financial analysis point at which total revenues equal total costs, resulting in no profit or loss.

Target Profit

The anticipated profit a business aims to achieve within a specific period, guiding pricing and production decisions.

Contribution Margin Ratio

The proportion of sales revenue that exceeds variable costs, indicating the percentage of each sales dollar available to cover fixed costs and provide profit.