Question

Which provisions of the SOX Act aim to encourage honesty and reporting of dishonest acts?

a) Section 302 - Corporate Responsibility for Financial Reports
b) Section 404 - Management Assessment of Internal Controls
c) Whistleblower Protection
d) All of the above

Answer 1

SOX encourages honesty and reporting of dishonest acts through provisions such as Section 302, Section 404, and Whistleblower Protection, all designed to protect investors and ensure accurate financial disclosures.

Step-by-step explanation:

The provisions of the Sarbanes-Oxley Act (SOX) that aim to encourage honesty and reporting of dishonest acts include Section 302 - Corporate Responsibility for Financial Reports, Section 404 - Management Assessment of Internal Controls, and Whistleblower Protection. All these provisions work in tandem to protect investors and enhance the reliability of financial disclosures.

Section 302 requires senior corporate officers to certify the accuracy of reported financial statements, Section 404 mandates a rigorous internal control structure for financial reporting, and Whistleblower Protection measures safeguard employees who disclose unlawful practices within their organizations.