Asked by Haley Yasui on Apr 24, 2024
Verified
Bev is the chief executive officer of Chef Cafés Inc., which is required to file certain financial reports with the Securities and Exchange Commission (SEC) . Under the Sarbanes-Oxley Act of 2002, Bev must
A) certify that the reports are complete and accurate.
B) designate a corporate official to assume liability for inaccuracies.
C) do nothing.
D) read the reports and be prepared to answer questions about them.
Sarbanes-Oxley Act
In 2002, the United States passed a federal statute aimed at defending investors by advancing the veracity and trustworthiness of corporate disclosures.
Financial Reports
Documents containing detailed information about a company's financial health, including balance sheets, income statements, and cash flow statements.
Securities and Exchange Commission
A U.S. government agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.
- Acknowledge the essentiality of truthful financial statements from company officers, as per federal regulations.
- Determine the responsibility of the SEC in the oversight of publicly traded companies and the significance of fulfilling its regulations.
Verified Answer
PD
Paola Duran5 days ago
Final Answer :
A
Explanation :
The Sarbanes-Oxley Act of 2002 requires CEOs and CFOs to certify the accuracy and completeness of financial reports filed with the SEC, ensuring accountability and transparency in corporate governance.
Learning Objectives
- Acknowledge the essentiality of truthful financial statements from company officers, as per federal regulations.
- Determine the responsibility of the SEC in the oversight of publicly traded companies and the significance of fulfilling its regulations.