Final answer:
True, Vanessa Armstrong must return her bonus under Sarbanes-Oxley Act provisions, as it mandates the reimbursement of incentives following financial restatements due to misconduct.
Step-by-step explanation:
Under the provisions of Sarbanes-Oxley, Vanessa Armstrong, the chief financial officer of D G Technologies, must reimburse the company for any bonus she received during the 12 months after the 20X1 financials were initially filed if she caused the company's financial statements to violate reporting requirements by including a significant overstatement of revenue to receive a large performance bonus. This statement is true.
The Sarbanes-Oxley Act, enacted in 2002, was implemented to increase confidence in financial information provided by public corporations and protect investors from accounting fraud. It established stricter reporting and corporate governance standards for publicly traded companies.
The statement that Vanessa Armstrong must reimburse the company for any bonus she received because of the overstatement of revenue under the provisions of the Sarbanes-Oxley Act is true. The act was implemented in response to several high-profile accounting scandals, such as those involving Enron and WorldCom, with the aim of protecting investors by enhancing the accuracy and reliability of corporate disclosures in financial statements. One of the provisions of the Sarbanes-Oxley Act requires executives to return bonuses received if it is found that the financials had to be restated due to misconduct.