alleryStart learning →Since the Sarbanes-Oxley Act, what do CFOs consider their top priority?
ACutting the cost of external audit work
BRaising the dividend paid to shareholders
CAccuracy of the financial reporting done
DExpanding the size of the finance department
Answer & Solution
Correct answer: C. Accuracy of the financial reporting done
1. In the aftermath of accounting scandals and the global recession of 2008 and 2009, CFOs consider accuracy of financial reporting their top priority.
2. They must also provide more detailed explanations of what lies behind the numbers to board members and other stakeholders.
3. Rather than showering the board with reports and statistics, they craft focused presentations on overall financial health and future prospects.
4. They must educate board members on the implications of Sarbanes-Oxley and Dodd-Frank and on how the company is complying.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 16 "Understanding Financial Management and Securities Markets", section 16.8 Trends in Financial Management and Securities Markets_
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