The US Securities and Change Commission (SEC), a US federal agency, is considered to be an investor's advocate. Its purpose is to protect investors, maintain market integrity, and facilitate capital formation. Under the Sarbanes-Oxley Act of 2002, the SEC requires CFOs to certify that the firm's:

(A) Growth plans are on track

(B) Shareholders are protected

(C) Financial statements are audited

(D) Earnings numbers are accurate

Question

Blair

Business

22 January, 10:03

The US Securities and Change Commission (SEC), a US federal agency, is considered to be an investor's advocate. Its purpose is to protect investors, maintain market integrity, and facilitate capital formation. Under the Sarbanes-Oxley Act of 2002, the SEC requires CFOs to certify that the firm's:

(A) Growth plans are on track

(B) Shareholders are protected

(C) Financial statements are audited

(D) Earnings numbers are accurate

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Answers (1)

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Allisson Weaver · Answer 1

(D) Earnings numbers are accurate

Explanation:

Under the Sarbanes-Oxley Act of 2002, the SEC requires CFOs to certify that the firm's financial statements should represent true and accurate amounts. It does contain any false commitment which affects the overall shareholder decisions.

Moreover, the top manager of the company checks the accuracy of the financial reports which contains important and valuable information about the company.

So, all options are incorrect except D.