The Sarbanes-Oxley Act (SOX)overhauled Incentives and the Independence of the Auditing

Multiple Choice

The Sarbanes-Oxley Act (SOX) overhauled incentives and the independence of the auditing process by:

A) requiring the CEO and CFO to return bonuses or profits from the sale of stock that are later shown to be due to misstated financial reports.
B) imposing large compliance costs on small companies.
C) requiring auditing firms to have long-standing relationships with their clients and receive lucrative auditing and consulting fees from them.
D) putting strict limits on the amount of non-audit fees (consulting or otherwise) that an accounting firm can earn from a firm that it audits.