Section 302 of the Sarbanes-Oxley Act is a section that has probably received th

Question

Section 302 of the Sarbanes-Oxley Act is a section that has probably received the most attention. This is because of its requirement that: Question 35 options:

A) there are penalties of $5 million dollars and 20 years in prison for willful violations.

B) that the CEO and CFO both certify that the board has processes to catch problems.

C) the CEO and CFO both certify the fairness and accuracy of financial statements.

D) all of the above.

I would think the answer is D, however my information can only confirm A & C. Please help calrify =)

Explanation / Answer

Yes , the answer is D

As

For A

Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, or makes a false entry in any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any matter within the jurisdiction of any department or agency of the United States or any case filed under title 11, or in relation to or contemplation of any such matter or case, shall be fined under this title, imprisoned not more than 20 years, or both.

sections require that the CEO and CFO of an organization certify and assert to stakeholders that SEC disclosures, including the financial statements of the company and all supplemental disclosures, are truthful and reliable, and that management has taken appropriate steps to satisfy themselves that the disclosure processes and controls in the company they oversee are capable of consistently producing financial information stakeholders can rely on (Section 302). The company’s external auditor must report on the reliability of management's assessment of internal control (Section 404).

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