Which of the following is NOT true regarding the Sarbanes-Oxley (SOX)Act?
A) SOX mandates the composition and authority of audit committees at public companies.
B) SOX prohibits personal loans to executives.
C) SOX requires corporations to disclose whether they have a code of ethics applicable to senior financial officers and,if not,to disclose why not.
D) SOX gives the SEC the authority to prohibit unfit persons from serving as officers or directors of a public company for a period of five years.

Question

Quizplus · Accepted Answer

This statement is not true as the SOX act gives the SEC the authority to prohibit unfit persons from serving as officers or directors of a public company permanently, not just for a period of five years.

Which of the Following Is NOT True Regarding the Sarbanes-Oxley