What Argument Can Be Made That Sarbanes-Oxley May Not Be

question 63

Multiple Choice

What argument can be made that Sarbanes-Oxley may not be effective in reducing fraud?

• A) It is not as stringent as international standards
• B) The SEC has had many laws for many years that have not seemed to make much of a difference
• C) The penalties under Sarbanes-Oxley are especially stringent, so it may not be enforced
• D) Civil and criminal penalties are not effective in preventing financial fraud

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Definitions:

APA

The American Psychological Association, a leading scientific and professional organization representing psychology in the United States.

Informal Rule Making

A regulatory process allowing for the development and issuance of rules without a formal hearing.

Formal Hearing Process

A structured legal procedure involving the presentation of evidence and legal arguments before a judicial authority to resolve a dispute.

Administrative Agencies

Governmental bodies with the authority to implement and administer particular legislation, often with rule-making and adjudicative functions.