Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 14 - Managerial Accounting - Self-Test Questions - Page 778: 3

Answer

B - CEOs and CFOs must certify that financial statements give a fair presentation of the company's operating results

Work Step by Step

One of the key purposes of the Sarbanes-Oxley Act (“SOX”) was to demand greater accountability from executive officers in a company. Section 302 of SOX requires that the CEO and CFO must certify that the financial statements are accurate and fairly portray the company’s financial position.
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