indicate whether each of the following statements about corporate governance is true or false.\na) the…

indicate whether each of the following statements about corporate governance is true or false.\na) the financial accounting standards board issues a code of ethical behavior by which public accountants must abide.\nb) the sarbanes oxley act created the public company accounting oversight board (pcaob).\nc) because of the sarbanes oxley act, audit firms are not permitted to provide many nonaudit services to audit clients.\nd) the fraud triangle identifies opportunity, pressure, and rationalization as the three elements that are typically present when fraud is committed.\ne) an executive found guilty of falsely certifying a company’s financial statements faces up to a $100,000 fine and five years in prison.

indicate whether each of the following statements about corporate governance is true or false.\na) the financial accounting standards board issues a code of ethical behavior by which public accountants must abide.\nb) the sarbanes oxley act created the public company accounting oversight board (pcaob).\nc) because of the sarbanes oxley act, audit firms are not permitted to provide many nonaudit services to audit clients.\nd) the fraud triangle identifies opportunity, pressure, and rationalization as the three elements that are typically present when fraud is committed.\ne) an executive found guilty of falsely certifying a company’s financial statements faces up to a $100,000 fine and five years in prison.

Answer

Brief Explanations:

a) The Financial Accounting Standards Board (FASB) sets accounting standards, not a code of ethical behavior for public accountants. The AICPA (American Institute of Certified Public Accountants) and other bodies deal with ethical codes for accountants. b) The Sarbanes - Oxley Act of 2002 established the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies. c) The Sarbanes - Oxley Act restricted audit firms from providing many non - audit services to their audit clients to enhance auditor independence. d) The fraud triangle indeed consists of opportunity, pressure, and rationalization as the three elements typically present when fraud occurs. e) An executive found guilty of falsely certifying a company's financial statements can face much stiffer penalties than a $100,000 fine and five years in prison under the Sarbanes - Oxley Act.

Answer:

a) False b) True c) True d) True e) False