Author Question: In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a ... (Read 99 times)

kwoodring

  • Hero Member
  • *****
  • Posts: 560
In what ways does the Sarbanes-Oxley Act improve the validity of the information provided by a firm's accounting system?

Question 2

Subjective appraisal methods use some measurable quantity, such as dollar volume of sales, as the basis for assessing performance.
 
 Indicate whether the statement is true or false



tranoy

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

Key components of the act include:

The Securities and Exchange Commission is required to establish a full-time five-member federal oversight board that will police the accounting industry.
Chief executive and financial officers are required to certify periodic financial reports and are liable for intentional violations.
Accounting firms are prohibited from providing many types of nonaudit and consulting services to the companies they audit.
Auditors must maintain financial records for five years.
There can be prison terms and fines for destroying financial documents.
A public corporation must change its lead auditing firm every five years.
There are added protections for whistle-blowers.

Answer to Question 2

False



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Blood in the urine can be a sign of a kidney stone, glomerulonephritis, or other kidney problems.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

The average older adult in the United States takes five prescription drugs per day. Half of these drugs contain a sedative. Alcohol should therefore be avoided by most senior citizens because of the dangerous interactions between alcohol and sedatives.

Did you know?

Signs and symptoms of a drug overdose include losing consciousness, fever or sweating, breathing problems, abnormal pulse, and changes in skin color.

For a complete list of videos, visit our video library