The Penalties for Violating the Provisions of the Sarbanes-Oxley Act

question 226

Multiple Choice

The penalties for violating the provisions of the Sarbanes-Oxley Act are

• A) nothing, this is an act which favours management.
• B) jail time and personal fines.
• C) forgoing a yearly bonus.
• D) loss of perks usually offered to management.
• E) not as strict as they initially were.

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Definitions:

External Reports

Financial documents that are prepared for parties outside the organization, such as shareholders and creditors.

Overhead Cost

Refers to ongoing expenses that are not directly tied to production but are necessary for running the business, such as rent, utilities, and insurance.

Direct Labour-Hours

A measure of the total time individuals spend working directly on manufacturing a product.

Expected Activity

This refers to the anticipated level of use or production volume a company plans for in a given period.