Which of the following does not represent a major provision of the Sarbanes-Oxley Act?
A)Nonaudit services.
B)Quarterly financial statements.
C)Auditor rotation.
D)Corporate executive accountability.

Question

Quizplus · Accepted Answer

Quarterly financial statements are not a major provision of the Sarbanes-Oxley Act. The act does require companies to file annual financial statements with the Securities and Exchange Commission (SEC) and undergo mandatory audits by an external auditor, but it does not require quarterly financial statements. The other three options listed are major provisions of the Sarbanes-Oxley Act. 
A) Nonaudit services - The act restricts the services that auditors can provide to a company to prevent conflicts of interest.
C) Auditor rotation - The act mandates that companies rotate their external auditing firms every five years to prevent a long-term relationship from developing that could impact the independence of the audit.
D) Corporate executive accountability - The act holds corporate executives personally responsible for the accuracy of financial statements and imposes criminal penalties for fraudulent activities.

Which of the Following Does Not Represent a Major Provision