The Sarbanes-Oxley Act

question 11

Multiple Choice

The Sarbanes-Oxley Act:

• A) arose because of several accounting scandals that rocked the public's confidence in published financial statements.
• B) was enacted, in part, to bring about reform in companies' financial reporting processes.
• C) has distinct guidelines for reporting on an organization's internal control practices.
• D) contains provisions whereby the chief executive officer (CEO) and chief financial officer (CFO) can be held criminally responsible if their firm's financial statements are found to be fraudulent in nature.
• E) all of the other answers are correct.

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Definitions:

Involuntary Behavior

Actions that occur without conscious control, often reflexive or automatic in nature.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Natural Response

An unlearned or innate reaction to a given stimulus, typically occurring without conscious thought.