If a Publicly Traded Corporation Misstated Its Accounting Filings to the SEC,the

question 18

Multiple Choice

If a publicly traded corporation misstated its accounting filings to the SEC,the "clawback" provision in the Sarbanes-Oxley Act gives the corporation the right to recover certain gains and profits earned by:

• A) The CPA or CPA firm that performed the company's audit
• B) The lead audit partner and concurring quality review partner who certified the company's financial statements
• C) The particular employee or employees who directly made the accounting error
• D) The CEO and CFO of the corporation

---

Definitions:

Industry Average

A benchmark or standard performance metric that represents the average performance of companies within a particular industry.

Adjusting Entry Process

The method of updating the accounts at the end of an accounting period by recording accruals, deferrals, estimations, and period costs to ensure accurate financial statements.

Errors

Mistakes or inaccuracies in financial records or transactions.

Unearned Revenues

Money received by a company for goods or services yet to be delivered or performed, considered a liability until fulfilled.