What Is Required by the Sarbanes-Oxley Act of 2002 in Regard

question 3

Multiple Choice

What is required by the Sarbanes-Oxley Act of 2002 in regard to the certification of the accuracy of public companies' SEC filings and the adequacy of internal controls?

• A) The chief executive officer,the chief financial officer,and all inside directors must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• B) The chief executive officer,the chief financial officer,and any controlling shareholder must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• C) The chief executive officer and the chief financial officer must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.
• D) The chief executive officer,the chief financial officer,and all outside directors must certify the accuracy of public companies' SEC filings and the adequacy of internal controls.

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Definitions:

Defined Contribution Plan

A type of retirement plan in which the employer, employee, or both make contributions on a regular basis, but the future payout is not defined.

Pension Expense

The cost recognized by an employer for contributions to a defined benefit pension plan based on formulas that factor in salary, years of service, and other elements.

Expected Earnings

The forecasted profit or loss for a company or investment, often used in the valuation of companies.

Pension Expense

The cost recognized in an accounting period related to the provision of pension benefits to employees.