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 decrease the incentive to commit fraud.
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.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act does not provide a provision that allows executives to avoid penalties for fraud by declaring personal bankruptcy. In fact, the act imposes stiffer penalties for fraud in terms of monetary fines and jail time to decrease the incentive to commit fraud. Additionally, public companies must adopt a code of ethics for senior financial officers and management must issue a report that indicates whether internal controls are effective at preventing errors and fraud.

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