Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?
A)It provides for stiffer monetary penalties.
B)It increases the maximum jail sentence for fraudulent reporting.
C)It removes legal protection from whistleblowers.
D)It provides that violators must repay any money obtained via fraud plus pay fines.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act actually increases legal protection for whistleblowers by requiring that all public companies establish confidential systems for reporting suspected fraud, and prohibiting retaliation against employees who report fraud. The Sarbanes-Oxley Act actually provides legal protection and incentives for whistleblowers to report corporate fraud, rather than removing legal protection. This is done through provisions that protect whistleblowers from retaliation, offer cash rewards for information leading to successful prosecution of fraud, and require companies to establish procedures for handling whistleblower complaints.

Which of the Following Is Not True About How the Sarbanes-Oxley