Which of the following statements is true about the Sarbanes-Oxley Act of 2002?
A)It is very easy on the rules regarding corporate behavior.
B)Organizations are spending millions of dollars each year by complying with regulations under the Sarbanes-Oxley Act.
C)It imposes no penalties for corporate governing and accounting lapses
D)With the regulations introduced, corporate boards need to paying less attention to issues like leadership development and succession planning.
E)The Act has brought down the number of HR executives and individuals with HR expertise.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 sets strict rules for corporate behavior and sets heavy fines and prison terms for noncompliance. Organizations are spending millions of dollars each year to comply with regulations under the Sarbanes-Oxley Act, which imposes criminal penalties for corporate governing and accounting lapses. Due to Sarbanes-Oxley and new Security and Exchange Commission regulations that impose stricter standards for disclosing executive pay, corporate boards are paying more attention to executive pay as well as issues like leadership development and succession planning. This has resulted in an increase in the number of HR executives and individuals with HR expertise who are being asked to serve on corporate boards to provide data and analysis.

Which of the Following Statements Is True About the Sarbanes-Oxley