Under current laws dealing with misstatements of financial results,which of the following statements is true?
A)Managers found guilty can escape paying fines if they declare bankruptcy.
B)Managers can be sentenced to long prison terms of up to 20 years per violation.
C)Managers found guilty may keep any bonuses or profits from the misrepresentation if their fines are less than such bonuses or profits.
D)If you blow the whistle on your boss for misstating financial results,you can be fired.

Question

Quizplus · Accepted Answer

Under current laws such as the Sarbanes-Oxley Act, managers found guilty of misstatements of financial results can be sentenced to long prison terms of up to 20 years per violation, as well as fines and other penalties. Option A is untrue because declaring bankruptcy does not excuse a person from paying fines or other penalties ordered by a court. Option C is untrue because managers found guilty of misrepresenting financial results are required to relinquish any ill-gotten gains, such as bonuses or profits from the fraud. Option D is untrue because whistleblowers are protected under the Dodd-Frank Act and cannot be fired or harassed for reporting financial misconduct.

Under Current Laws Dealing with Misstatements of Financial Results,which of the Following