In what ways does the Sarbanes-Oxley Act improve the validity of ...

[kwoodring]

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]

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