Which of the following is not a provision of (nor an outgrowth of) the Sarbanes-Oxley Act?
A) A public company's annual report must contain a separate disclosure that assesses the company's internal controls.
B) Management is essentially responsible for establishing and maintaining internal controls.
C) A company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO) can be held criminally responsible if their firm's financial statements are fraudulent.
D) A company must prepare a balance sheet, an income statement, a statement of stockholders' equity, and a statement of cash flows.
E) A new body, the Public Company Accounting Oversight Board, oversees and investigates the audits and auditors of public companies.

Question

Quizplus · Accepted Answer

The requirement for a company to prepare a balance sheet, an income statement, a statement of stockholders' equity, and a statement of cash flows is a fundamental accounting principle and not a direct provision or outgrowth of the Sarbanes-Oxley Act. The other options (A, B, C, E) are directly related to the provisions or outcomes of the Sarbanes-Oxley Act, which was enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures.

Which of the Following Is Not a Provision of (Nor