"To be compliant with the requirements of the Sarbanes-Oxley Act, I will need to ensure that our company ________," thought Hilmar Preiss, Chairman of the Board.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires a more independent board of directors to ensure greater transparency and accountability in financial reporting. This helps to prevent conflicts of interest and mismanagement of financial information. Loosening accounting procedures or keeping two sets of books would be illegal and unethical, while preventing managers from signing off on financial results would hinder their ability to fulfill their duties. Offering large bonuses to executives is not a requirement of the Sarbanes-Oxley Act.

"To Be Compliant with the Requirements of the Sarbanes-Oxley Act