Which one of the following is not a requirement imposed by the Sarbanes-Oxley Act?
A) Accounting firms may not offer other services to companies they audit.
B) Any one individual is prohibited from serving as the chairman of a firm's board of directors for more than 5 years.
C) A board's audit committee must consist of directors who are independent of the firm's management.
D) Management must certify that the financial statements present a fair view of the firm's financial position.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act does not impose a specific limit on the amount of time an individual can serve as the chairman of a firm's board of directors. However, it does require that a majority of the board be independent directors who do not have any financial or personal ties to the firm's management. The Act also imposes strict requirements on accounting firms that audit public companies, including a prohibition on offering non-audit services to those companies. Additionally, the Act requires management to certify the accuracy of the company's financial statements and for the audit committee to be comprised of independent directors.

Which One of the Following Is Not a Requirement Imposed