Asked by Bretton Lenzi on May 10, 2024
Verified
The Sarbanes-Oxley Act has all but which of the following provisions?
A) Creating a five-person Accounting Oversight Board with authority to review and discipline auditors.
B) Creating severe civil and criminal penalties for enterprises that engage in the commission of two or more predicate acts within a period of ten years.
C) Increasing the penalties for existing federal crimes and creating new criminal offenses.
D) Adding new financial disclosure requirements.
Sarbanes-Oxley Act
A federal law enacted in 2002 to protect investors from fraudulent accounting activities by corporations.
Accounting Oversight Board
A regulatory organization that oversees the audits of public companies to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.
Civil and Criminal Penalties
Legal sanctions that can be imposed for violations of law, with civil penalties typically involving fines or damages and criminal penalties involving imprisonment or probation.
- Understand and acknowledge the impact of critical federal statutes and conventions, including the CAN-SPAM Act and the Sarbanes-Oxley Act, on criminal liability.
Verified Answer
ZK
Zybrea KnightMay 16, 2024
Final Answer :
B
Explanation :
The Sarbanes-Oxley Act focuses on reforming corporate governance and accounting practices, including creating an oversight board for auditors, increasing penalties for crimes, and adding financial disclosure requirements. It does not specifically address the creation of severe civil and criminal penalties for enterprises engaging in multiple predicate acts over ten years, which is more related to racketeering or organized crime legislation.
Learning Objectives
- Understand and acknowledge the impact of critical federal statutes and conventions, including the CAN-SPAM Act and the Sarbanes-Oxley Act, on criminal liability.