To Encourage Reports of Abusive Securities Law Violations,a Company Maintains

question 30

Multiple Choice

To encourage reports of abusive securities law violations,a company maintains an internal whistleblower hotline.The hotline allows callers to identify themselves or to remain anonymous.A caller,who identified himself by name and company job title,recently informed the company that the actuarial assumptions underlying its expected employee turnover was wrong.The caller then left a second,more detailed message in which the accrued impact of this mistake on the company's Estimated Future Liability for Workers' Compensation clams was estimated.The caller's estimates were correct,but the amount of the error was determined by the company to have arisen due to an innocent mistake and the amounts were immaterial to the company's financial statements.Accordingly,under the Sarbanes-Oxley Act,the company:

• A) May disclose the caller's name if the company does so out of a sincere desire to discourage wasteful calls about immaterial matters
• B) May disclose the caller's name, without restriction
• C) May not disclose the caller's identity under any circumstances
• D) May not disclose the caller's name, but may disclose in general terms his job title and the degree to which he had access to internal company records

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Definitions:

Individual Effort

The amount of work or energy an individual person puts into a task or activity without external assistance, contributing to the attainment of goals.

Ethics

Moral principles that govern a person's behavior or the conducting of an activity, often serving as a guide for what is considered right or wrong.

Bottom-Up Communication

A communication approach where ideas and feedback flow from the lower levels of the organizational hierarchy to the upper levels, encouraging employee input and engagement.

Merit-Based Pay Raise

An increase in salary awarded to employees based on their performance and achievements, rather than seniority or hours worked.