Asked by Tmobile Oakland on May 23, 2024
Verified
Which of the following legislation has increased the responsibilities on ethics officers and boards of directors to monitor financial reporting?
A) Sarbanes-Oxley Act
B) Robinson-Patman Act
C) Ethics Officer Responsibility Act
D) Sherman Antitrust Act
E) Enron Financial Responsibility Act
Sarbanes-Oxley Act
A U.S. law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.
Financial Reporting
The process of disclosing financial results and conditions of a company to its stakeholders and the public.
- Understand the essential tasks of an ethics officer and the value of their contribution.
- Understand the Federal Sentencing Guidelines for Organizations and their consequences for ethical business conduct.
Verified Answer
TC
Tasha CarlsonMay 24, 2024
Final Answer :
A
Explanation :
The Sarbanes-Oxley Act was passed in response to the accounting scandals of Enron, WorldCom, and other companies. This legislation increased the responsibilities of ethics officers and boards of directors to monitor financial reporting, including the establishment of an independent audit committee, CEO and CFO certification of financial statements, and enhanced financial disclosures.
Learning Objectives
- Understand the essential tasks of an ethics officer and the value of their contribution.
- Understand the Federal Sentencing Guidelines for Organizations and their consequences for ethical business conduct.
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