Question #$1$

What is the role of the U$.$S Securities and exchange commission $($SEC$)$ in monitoring capital markets?

A$)$ It requires to file quarterly financial and annual reports

B$)$ It provides a safe harbor of foreign intities to sell to US investors

C$)$ It encourages firms to raise capital without registering with the SEC as long as the securities are sold within the US

D$)$ It supercedes the Sarbanes$-$Oxley Act of $2002$ and the credit rating agency reform Act of $2006$

Question #$2$

A privately held firm$$s board of directors has decided to go public by conducting an initial public offering $($IPO$)$ to raise capital for global expansion. As a publicly traded organization, the firm is subject to the sarbanes$-$Oxley $-$Act$($SOX$).$ Which action allows the organization to be compliant with SOX?

A$)$ Verifying that a company employees have complied with conflict of interest

B$)$ Conducting an internal assessment of corporate controls

C$)$ Assessing whether operational results are within budgetary standards

D$)$ Analyzing procedures for access to sensitive employee information