Question 1

Which of the following is not a problem area of the SEC?

Accepted Answer

A)  Reporting
B)  Employee Turnover
C)  Punishment
D)  Market Efficiency
E)  ResourcesF) A) and E)
G) A) and B)

Question 2

The penalties for committing a white-collar crime were generally increased from a maximum of 5 years imprisonment to 20 years.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not one of the four divisions of the SEC?

Accepted Answer

A)  Division of Corporation Finance
B)  Division of Securities Regulation
C)  Division of Enforcement
D)  Division of Trading and Markets
E)  Division of Investment ManagementF) C) and D)
G) A) and E)

Question 4

The Sarbanes-Oxley Act created a new oversight body to regulate auditors, and reduced punishments for corporate white-collar crime which in the end innocent shareholders would have to pay for.

Accepted Answer

A) True 
 B)False  False

Question 5

As it is often the company that gets fined by the SEC, ultimately those fines are paid by the shareholders because it comes out of the companies profits.

Accepted Answer

A) True 
 B)False  True

Question 6

Since March 2004, the SEC requires 8-Ks to be filed within 4, instead of the previous 5 to 15, business days after the triggering event.

Accepted Answer

A) True 
 B)False

Question 7

Sarbanes-Oxley encourages a firm to provide both auditing and consulting activities for the same firm.

Accepted Answer

A) True 
 B)False

Question 8

The following is true about the Division of Enforcement, EXCEPT:

Accepted Answer

A)  Each year the SEC prosecutes between 4,000 and 5,000 individuals and companies.
B)  Most prosecutions are settled out of court.
C)  Violations mainly involve accounting fraud, insider trading, and deception regarding securities.
D)  All of the above are true.
E)  Both b and c are not true.F) A) and E)
G) All of the above

Question 9

All of these are characteristics of the NYSE except:

Accepted Answer

A)  Companies have a majority of independent directors.
B)  Nominating committee of the board must be composed entirely of independent directors.
C)  Committee will have an increased authority and responsibility to hire and fire the auditing firm.
D)  All are characteristics of the NYSE.
E)  None are characteristics of the NYSE.F) A) and E)
G) All of the above

Question 10

SEC commissioners must be appointed by the President and confirmed by the Senate.

Accepted Answer

A) True 
 B)False

Question 11

Is the Sarbanes-Oxley Act a success or a failure? Which of the following answers illustrate how difficult it is to determine the Act's level of success?

Accepted Answer

A)  We don't know how much fraud would have been committed had the Act not been passed.
B)  We can't easily attribute any increase in investor confidence directly to the Act.
C)  We can't reliably associate any increase in the firm's value as a result of the Act.
D)  All of the above.
E)  None of the above.F) B) and E)
G) C) and E) D

Question 12

A reduction of the deadline after close of the fiscal year for the filing of annual reports might increase the accuracy with which companies compile reports.

Accepted Answer

A) True 
 B)False

Question 13

The SEC can file criminal charges.

Accepted Answer

A) True 
 B)False

Question 14

Which government entity oversees the Public Company Accounting Oversight Board?

Accepted Answer

A)  Federal Trade Commission FT
C)  
B)  Department of Treasury
C)  Securities Exchange Commission SE
C)  
D)  Federal Reserve Bank
E)  None of the above.F) B) and C)
G) A) and D)

Exam 9: The Securities and Exchange Commission and Sarbanes-Oxley

Which of the following is not a problem area of the SEC?

Correct Answer
verified

The penalties for committing a white-collar crime were generally increased from a maximum of 5 years imprisonment to 20 years.

Correct Answer
verified

Which of the following is not one of the four divisions of the SEC?

Correct Answer
verified

The Sarbanes-Oxley Act created a new oversight body to regulate auditors, and reduced punishments for corporate white-collar crime which in the end innocent shareholders would have to pay for.

Correct Answer
verified
False

As it is often the company that gets fined by the SEC, ultimately those fines are paid by the shareholders because it comes out of the companies profits.

Correct Answer
verified
True

Since March 2004, the SEC requires 8-Ks to be filed within 4, instead of the previous 5 to 15, business days after the triggering event.

Correct Answer
verified

Sarbanes-Oxley encourages a firm to provide both auditing and consulting activities for the same firm.

Correct Answer
verified

The following is true about the Division of Enforcement, EXCEPT:

Correct Answer
verified

All of these are characteristics of the NYSE except:

Correct Answer
verified

SEC commissioners must be appointed by the President and confirmed by the Senate.

Correct Answer
verified

Is the Sarbanes-Oxley Act a success or a failure? Which of the following answers illustrate how difficult it is to determine the Act's level of success?

Correct Answer
verified
D

A reduction of the deadline after close of the fiscal year for the filing of annual reports might increase the accuracy with which companies compile reports.

Correct Answer
verified

The SEC can file criminal charges.

Correct Answer
verified

Which government entity oversees the Public Company Accounting Oversight Board?

Correct Answer
verified

Exam 9: The Securities and Exchange Commission and Sarbanes-Oxley

Which of the following is not a problem area of the SEC?

Correct AnswerverifiedShow Answer

The penalties for committing a white-collar crime were generally increased from a maximum of 5 years imprisonment to 20 years.

Correct AnswerverifiedShow Answer

Which of the following is not one of the four divisions of the SEC?

Correct AnswerverifiedShow Answer

The Sarbanes-Oxley Act created a new oversight body to regulate auditors, and reduced punishments for corporate white-collar crime which in the end innocent shareholders would have to pay for.

Correct AnswerverifiedFalse

As it is often the company that gets fined by the SEC, ultimately those fines are paid by the shareholders because it comes out of the companies profits.

Correct AnswerverifiedTrue

Since March 2004, the SEC requires 8-Ks to be filed within 4, instead of the previous 5 to 15, business days after the triggering event.

Correct AnswerverifiedShow Answer

Sarbanes-Oxley encourages a firm to provide both auditing and consulting activities for the same firm.

Correct AnswerverifiedShow Answer

The following is true about the Division of Enforcement, EXCEPT:

Correct AnswerverifiedShow Answer

All of these are characteristics of the NYSE except:

Correct AnswerverifiedShow Answer

SEC commissioners must be appointed by the President and confirmed by the Senate.

Correct AnswerverifiedShow Answer

Is the Sarbanes-Oxley Act a success or a failure? Which of the following answers illustrate how difficult it is to determine the Act's level of success?

Correct AnswerverifiedD

A reduction of the deadline after close of the fiscal year for the filing of annual reports might increase the accuracy with which companies compile reports.

Correct AnswerverifiedShow Answer

The SEC can file criminal charges.

Correct AnswerverifiedShow Answer

Which government entity oversees the Public Company Accounting Oversight Board?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified