What three major requirements resulted from the Sarbanes-Oxley Act?
What will be an ideal response?
Answer:
(1) The CEO and CFO attest to the fairness of the financial reports.
(2) The company maintains an effective internal control structure around financial reporting.
(3) The company and auditors assess the effectiveness of the controls over the most recent fiscal year.
You might also like to view...
Over time the euro will impact the pan-European capital market by leading to:
A. an increase in the cost of capital. B. a decline in the overall level of savings and investment. C. an increased efficiency with which investment funds are allocated. D. reduced liquidity in the market. E. reduced competition among European producers.
In a multi-divisional firm, what are the two fundamental (and related) problems with the internal capital allocation process?
a. centralized information and tax-avoidance b. monitoring and signaling c. decentralized information and incentive problems d. signaling and tax-avoidance