Which of the Following Is Not a Provision of (Nor

question 20

Multiple Choice

Which of the following is not a provision of (nor an outgrowth of) the Sarbanes-Oxley Act?

• A) A public company's annual report must contain a separate disclosure that assesses the company's internal controls.
• B) Management is essentially responsible for establishing and maintaining internal controls.
• C) A company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO) can be held criminally responsible if their firm's financial statements are fraudulent.
• D) A company must prepare a balance sheet, an income statement, a statement of stockholders' equity, and a statement of cash flows.
• E) A new body, the Public Company Accounting Oversight Board, oversees and investigates the audits and auditors of public companies.

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Definitions:

Normative

Refers to standards or norms that dictate what actions or ideas are right and wrong, often applied in ethical, legal, and societal contexts.

Normative Values

Principles or standards of behavior that are considered important in a particular society or group.

Codes Of Ethics

Written guidelines issued by an organization to its workers and management to help them conduct their actions in accordance with its primary values and ethical standards.

Corporate Conduct

The behavior of a corporation, including its practices, ethics, and the way it interacts with stakeholders and the environment.