In 2002,the United States Congress passed ________ that requires,among other things,that CEO's and CFOs certify the accuracy and appropriateness of their firm's financial statements and increase the penalties against them if the financial statements later prove to be fraudulent.
A) the Sarbanes-Oxley Act
B) new American GAAP
C) the IFRS
D) revised GAAP

Question

Quizplus · Accepted Answer

The passage refers to the 2002 US Congress passing a law that requires CEOs and CFOs to certify the accuracy of their firm's financial statements and increase penalties for fraudulent statements. This is a reference to the Sarbanes-Oxley Act. B) and D) are both incorrect as they refer to accounting standards and not legislation. C) is also incorrect as it refers to international accounting standards, which are not relevant to US Congress passing laws.

In 2002,the United States Congress Passed ________ That Requires,among Other