B) Management must issue a report that indicates whether the financial statements are free of error.
C) Management must conduct a review of the company's internal control system.
D) Background checks must be performed on all employees.
32) Which of the following is not a provision of the Sarbanes-Oxley Act?
A) Executives can avoid penalties for fraud by declaring personal bankruptcy.
B) Stiffer penalties for fraud in terms of monetary fines and jail time decrease the incentive to commit fraud.
C) Public companies must adopt a code of ethics for senior financial officers.
D) Management must issue a report that indicates whether internal controls are effective at preventing errors and fraud.
33) Which of the following is not true about how the Sarbanes-Oxley Act counteracts incentives for committing fraud?
A) It provides for stiffer monetary penalties.
B) It increases the maximum jail sentence for fraudulent reporting.
C) It removes legal protection from whistleblowers.
D) It provides that violators must repay any money obtained via fraud and pay fines.
34) The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:
A) accounting managers.
B) marketing managers.
C) production managers.
D) all managers.
35) Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?
A) Internal control report from management
B) Code of ethics
C) Stronger oversight by directors
D) Internal control audit by external auditors
36) Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to encourage good character?
A) Anonymous tip lines
B) Whistleblower protection
C) Code of ethics
D) Stiffer fines and prison terms
37) Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?
A) Stronger oversight by directors
B) Code of ethics
C) Stiffer fines and prison terms
D) Anonymous tip lines
38) Which of the following is not true about how the Sarbanes-Oxley Act emphasizes the importance of the character of managers and employees?
A) It requires that ethics be embedded in the organizational culture.