Vanessa Armstrong was the chief financial officer for D&G Technologies, a publicly traded corporation. During the 20X1 fiscal year, she caused the company's financial statements to violate reporting requirements by including a significant overstatement of revenue so that she would receive a large performance bonus. When her transgression came to light, the company was required to issue restated financial statements for 20X1. Under the provisions of Sarbanes-Oxley, Vanessa must reimburse the company for any bonus she received during the 12 months after the 20X1 financials were initially filed.

Question

Quizplus · Accepted Answer

This is in accordance with the clawback provisions of Sarbanes-Oxley, which require executives to return any incentive-based compensation received in the 12 months following the filing of financial statements that later need to be restated due to material noncompliance with financial reporting requirements.

Vanessa Armstrong Was the Chief Financial Officer for D&G Technologies