Under the _____, CEOs and CFOs may be criminally prosecuted if they knowingly certify misleading financial statements.
A) Sherman Antitrust Act
B) Ethical Compliance Act.
C) Robinson-Patman Act,
D) Sarbanes-Oxley Act.,
E) Sherman Antitrust Act..

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act (SOX) was enacted in 2002 to increase the accuracy and reliability of corporate financial disclosures. Under SOX, CEOs and CFOs must personally certify the accuracy of financial statements and may face criminal prosecution if they knowingly certify misleading financial statements. This provision was included to discourage corporate executives from engaging in fraudulent accounting practices.

Under the _____, CEOs and CFOs May Be Criminally Prosecuted