Which of the following is not a provision of the Sarbanes-Oxley Act?
A)Executives can avoid penalties for fraud by declaring personal bankruptcy.
B)Stiffer penalties for fraud in terms of monetary fines and jail time.
C)Public companies must adopt a code of ethics for senior financial officers.
D)Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.Executives cannot avoid monetary penalties by declaring personal bankruptcy.

Question

Quizplus · Accepted Answer

The provision stating that executives can avoid penalties for fraud by declaring personal bankruptcy is not a provision of the Sarbanes-Oxley Act. The other options, stiffer penalties for fraud, adoption of a code of ethics, and management issuing a report on internal controls, are all provisions of the Act. Additionally, the statement that executives cannot avoid monetary penalties by declaring personal bankruptcy is also true, as the Act specifically prohibits this.

Which of the Following Is Not a Provision of the Sarbanes-Oxley