In the US, the First Legislation Requiring Management of Public Companies to Companies

question 8

Multiple Choice

In the U.S., the first legislation requiring management of public companies to maintain a system of internal controls was the:

• A) Committee of Sponsoring Organizations (COSO) of the Treadway Commission Act.
• B) Sarbanes-Oxley Act.
• C) Foreign Corrupt Practices Act.
• D) Public Company Accounting Oversight Board (PCAOB) Act.

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Definitions:

Cosureties

Two or more parties who jointly agree to guarantee the debt or obligation of another, sharing the liability.

Conditional Guarantor

A party that agrees to fulfill the obligations of a debtor, but only under specific conditions outlined in an agreement.

Premium

The amount paid for an insurance policy or the cost above the nominal value of something.

Surety

A person or entity that assumes responsibility for another's performance of an obligation, such as the repayment of a loan or the fulfillment of a contract.