After the passage of the Sarbanes-Oxley Act in 2002, many new responsibilities were put into place for organizations and their management. What are the four significant issues that were addressed by the act and its provisions as presented in this chapter? How does the act and its various requirements help deter fraudulent activity?

EA8. 1.4 Indicate whether each of the following statements is true or false.

A. Bribery in the world of business typically happens when an organization or representative of an organization gives financial benefits to an official to gain favor or manipulate a business decision.

B. The Foreign Corrupt Practices Act was implemented in the aftermath of disclosures that businesses were violating the IMA Code of Ethics.

C. Managers are required to follow specific rules issued by the IMA for internal financial reporting.

D. Ethics is more than obeying laws.

E. The Sarbanes-Oxley Act addressed public company accounting reform.