In July 2002,the U.S. Congress passed the Sarbanes-Oxley bill. Among other things,this bill
I. created an independent auditing oversight board run by the SEC.
II. increased penalties for corporate wrongdoers.
III. eliminated the use of stock options for executive compensation.

Question

Quizplus · Accepted Answer

Choice I is correct as the Sarbanes-Oxley bill created an independent auditing oversight board run by the SEC called the Public Company Accounting Oversight Board (PCAOB). Choice II is also correct as the bill increased penalties for corporate wrongdoing, including fines and imprisonment. However, choice III is incorrect as the bill did not eliminate the use of stock options for executive compensation.