SOX requires the SEC to prescribe rules requiring each annual report required by section 13(a) or 15(d) of the Securities Exchange Act of 1934 to contain an internal control report, which shall: Multiple Choice State the responsibility of management for establishing and maintaining an adequate internal control structure and procedures for financial reporting Contain an assessment, as of the end of the most recent fiscal year of the issuer, of the effectiveness of the internal control structure and procedures of the issuer for financial reporting Neither item "a" or "b" Both items "a" and "b" The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank) established the Financial Stability Oversight Council. The purposes of the Council includes the following items except Multiple Choice To promote market discipline, by eliminating expectations on the part of shareholders, creditors, and counterparties of such companies that the Government will shield them from losses in the event of failure To respond to emerging threats to the stability of the United States financial system To identify those corporations who ongoing solvency is so critical to national security that they are classified as 'too big to fail To identify risks to the financial stability of the United States that could arise from the material financial distress or failure, or nnnnnri activities nf larria interconnectori hank holdinn According to Dodd-Frank, the Federal Deposit Insurance Corporation shall take such steps as may be necessary for the reserve ratio of the Deposit Insurance Fund to reach percent of estimated insured deposits by September 30. Multiple Choice 1.00 / 2010 1.35/2020 2.00/2010 2.50/2020 EXR Submit PS Dodd-Frank called for rules that require an issuer to disclose in the annual proxy sent to investors the reasons why the issuer has chosen either (1) the same person to serve as chairman of the board of directors and chief executive officer (or in equivalent positions); or (2) different individuals to serve as chairman of the board of directors and chief executive officer (or in equivalent positions of the issuer). Think through this which of the following is the least important reason for separating the two functions and filling them with different individuals: OCX DS ocx DS12 Multiple Choice OCX DS13 It is the board of directors that votes to approve and increase executive pay. When the CEO is also the chairman, a conflict of interest arises, as the CEO is voting on his or her own compensation. OCX DS14 One large annual salary can be eliminated. A board led by an independent chairperson is more likely to identify and monitor areas of the company that are drifting from its corporate strategy, and to put into place corrective measures to get it back on track. Multiple Choice DS OCX It is the board of directors that votes to approve and increase executive pay. When the CEO is also the chairman, a conflict of interest arises, as the CEO is voting on his or her own compensation DS1 0cx DS13 One large annual salary can be eliminated. DS1 A board led by an independent chairperson is more likely to identify and monitor areas of the company that are drifting from its corporate strategy, and to put into place corilctive measures to get it back on track. When the board is led by management, employees may be less likely to report activities such as fraud, and the audit committee may be less likely to act on such reports
