Loans to executives were prohibited by the Sarbanes-Oxley Act of 2002 because: (a) The board of directors
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Loans to executives were prohibited by the Sarbanes-Oxley Act of 2002 because:
(a) The board of directors granted huge loans to company officers, and then conveniently authorized “forgiveness” of the loan, which inevitably led to the company’s bankruptcy in due course.
(b) The huge loan is treated as a related party transaction in the statement of financial position.
(c) The huge loan is not given based on the grade of the employee where the higher the position of the employee in the company, the bigger the amount of the loan.
(d) The huge loan is treated as a shortterm loan due in one year within the statement of financial position.
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Related Book For
Detecting Accounting Fraud Analysis And Ethics Global Edition
ISBN: 9781292059402
1st Global Edition
Authors: Cecil W. Jackson
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