Which of the following is not a provision of the Sarbanes-Oxley Act?
A) Executives can avoid penalties for fraud by declaring personal bankruptcy.
B) Stiffer penalties for fraud in terms of monetary fines and jail time decrease the incentive to commit fraud.
C) Public companies must adopt a code of ethics for senior financial officers.
D) Management must issue a report that indicates whether internal controls are effective at preventing errors and frauD.
Executives cannot avoid monetary penalties by declaring personal bankruptcy.

Question

Quizplus · Accepted Answer

The provision that executives can avoid penalties for fraud by declaring personal bankruptcy is not included in the Sarbanes-Oxley Act, therefore choice A is the correct answer. The other choices (B, C, D) are provisions of the act.

Which of the Following Is Not a Provision of the Sarbanes-Oxley