Section 302 of the Sarbanes-Oxley Act Requires the CEO and CFO

question 62

Multiple Choice

Section 302 of the Sarbanes-Oxley Act requires the CEO and CFO of each public company to personally certify each annual and quarterly report issued to the SEC. These certifications indicate, among other things, that:

• A) the signing officer has reviewed the report.
• B) the financial statements do not contain any untrue statements or omissions of material facts.
• C) the signing officer acknowledges responsibility for establishing and maintaining internal controls.
• D) All of the above.

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Definitions:

Normal Populations

Populations in which the distribution of data points follows a normal (bell-shaped) distribution curve.

Two-Tailed Hypothesis Test

A statistical analysis method where the significance of the observed data can be in either tail of the distribution, testing for either too high or too low outcomes relative to the hypothesized values.

Critical Value

A threshold in a statistical test that a test statistic must exceed to reject the null hypothesis.

T-Distribution

A probability distribution that is used to estimate population parameters when the sample size is small and the population variance is unknown.