Vanessa Armstrong was the CFO for D&G Technologies, a publicly traded corporatio
ID: 2541402 • Letter: V
Question
Vanessa Armstrong was the CFO for D&G Technologies, a publicly traded corporation. During the 2015 fiscal year, she caused the company’s financial statements to violate reporting requirements by including a significant overstatement of revenue so that she would receive a large performance bonus. When her transgression came to light, the company was required to issue restated financial statements for 2015. Under the provisions of Sarbanes-Oxley, what potential penalties does Ms. Armstrong face? Search entries or author
Explanation / Answer
In the given scenario, Armstrong has committed a wilful fruad, since the revenue was wilfully overstated to receive higher bonus. As per the Serbance-Oxley act, the punishment for such a wilful fraud is a fine upto $5,000,000 or imprisonment for up to 20 years or both. So, Ms. Armstrong is exposed to these penalties.
The penalties are mentioned in detail under Sectoin 906 (c) of Serbanes-Oxley act.
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