Which of the Following Is Not a Compliance Rule Resulting

question 67

Multiple Choice

Which of the following is not a compliance rule resulting from the Sarbanes-Oxley Act?

• A) A substantial majority of directors must be independent.
• B) Personal loans to executives from corporations are prohibited.
• C) Brokers must disclose if the public company is a client.
• D) Auditors must list nonaudit services they are unable to perform during an audit.

Understand how dividends received from investments impact the carrying amount of the investment.

Identify the conditions under which consolidated financial statements are prepared.

Recognize the accounting implications of buying and selling bonds before their maturity date.

Understand how investments are reported and classified on the balance sheet.

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Definitions:

Organization's Strategy

The comprehensive plan formulated by an organization to achieve its long-term goals and objectives.

Employees' Capabilities

The skills, expertise, and competencies that employees possess, which contribute to an organization's success.

Routine Activity

Regular, customary actions or practices that are often predictable and performed as a part of one's daily or regular schedule.

Payroll

The total amount of wages or salaries paid by a business to its employees, as well as the process of calculating and distributing these payments.