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Paralegal Exam Prep

Category - Legal Envrmt

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The key provisions of the Sarbanes-Oxley Act of 2002 are:
  1. Companies must file certain disclosures with the Securities and Exchange Commission and the fiduciary duties of managers of junk bond funds.
  2. Senior management must certify the accuracy of reported financial statements and management and auditors must establish internal controls.
  3. Investment advisors must register with the Securities and Exchange Commission and the Securities and Exchange Commission must monitor the activities of investment advisors.
  4. The Securities and Exchange Commission must appoint independent trustees to oversee bond sales and must monitor the activities of investment advisors.
  5. A and B
Explanation
Answer: B. The key provisions of the Sarbanes-Oxley Act of 2002 are that senior management must certify the accuracy of reported financial statements and management and that auditors must establish internal controls. Generally, the Sarbanes-Oxley Act sets new standards to improve financial disclosures from corporations and prevent accounting fraud. It was enacted in response to a number of major corporate accounting scandals.
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