Recent legislation makes CEOs and CFOs explicitly responsible for establishing, evaluating, and monitoring the effectiveness of internal controls over financial reporting and disclosure.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 (SOX) requires CEOs and CFOs to certify the accuracy of financial statements and disclosures, and to establish and maintain effective internal controls over financial reporting. This legislation makes them explicitly responsible for evaluating and monitoring the effectiveness of these controls.

Recent Legislation Makes CEOs and CFOs Explicitly Responsible for Establishing