Question

According to the provisions set forth by the Sarbanes-Oxley Act, the ________, a federal government agency, may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

A) United States International Trade Commission
B) Federal Reserve System
C) Federal Communications Commission
D) Securities and Exchange Commission

Answer 1

The Securities and Exchange Commission (SEC) can prohibit individuals who have committed securities fraud from serving as officers or directors of public companies under the Sarbanes-Oxley Act. So, the correct answer is option D.

Step-by-step explanation:

According to the provisions set forth by the Sarbanes-Oxley Act, the Securities and Exchange Commission (SEC), a federal government agency, may issue an order prohibiting any person who has committed securities fraud from acting as an officer or a director of a public company.

The Sarbanes-Oxley Act was established in response to major accounting scandals involving prominent corporations such as Enron, Tyco International, and WorldCom. The Act aimed to increase confidence in the financial information provided by public corporations and protect investors from accounting fraud.

So, the correct answer is option D.