312-49V11 · Question #10
Scarlett, a compliance officer, is working for a publicly traded company that has recently faced accusations of financial misconduct. During her investigation, she comes across a law passed by the…
The correct answer is B. SOX. This question directly aligns with CHFI v11 objectives under Regulations, Policies, and Ethics, particularly laws that influence forensic investigations and corporate compliance. The law described is the Sarbanes-Oxley Act (SOX), enacted in 2002 in response to major corporate…
Question
Scarlett, a compliance officer, is working for a publicly traded company that has recently faced accusations of financial misconduct. During her investigation, she comes across a law passed by the A.S.Congress in 2002 aimed at protecting investors from fraudulent accounting practices by corporations. This law mandates stricter corporate financial reporting standards, internal controls, and penalties for fraudulent activities. Which of the following laws is Scarlett most likely reviewing in this case?
Options
- APCI DSS
- BSOX
- CGLBA
- DECPA
How the community answered
(49 responses)- A16% (8)
- B73% (36)
- C4% (2)
- D6% (3)
Explanation
This question directly aligns with CHFI v11 objectives under Regulations, Policies, and Ethics, particularly laws that influence forensic investigations and corporate compliance. The law described is the Sarbanes-Oxley Act (SOX), enacted in 2002 in response to major corporate accounting scandals such as Enron and WorldCom. CHFI v11 highlights SOX as a critical regulation governing publicly traded companies in the United States. SOX mandates strict requirements for corporate financial reporting, internal control assessments, executive accountability, audit independence, and record retention. Sections such as SOX Section 302 require executives to personally certify the accuracy of financial statements, while Section 404 enforces internal control audits to prevent fraud. These requirements are highly relevant in forensic investigations involving financial misconduct, as investigators often rely on audit logs, financial records, and compliance documentation governed by SOX.
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