L5M2 Exam Dumps | What is the purpose of the Sarbanes-Oxley Regulation?

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Managing Supply Chain Risk
CIPS.L5M2.v2023-03-18.q38
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What is the purpose of the Sarbanes-Oxley Regulation?

A. to protect the environment

B. to ensure high levels of ethical practice with regards to working conditions

C. to encourage transparency in financial reporting

D. to ensure that products that reach the market are fit for purpose

Correct Answer: C

Explanation
Sarbanes Oxley Regulations encourages transparency in financial reporting. The regulations came in response to the Enron scandal in 2001 when Enron bosses were falsifying financial records to make the company look better than it was, then the company went bust. The point of Sarbanes Oxley is to ensure that this doesn't happen again- that business leaders report correct financial statements to shareholders. The study guide talks about this on p.42 but I'd recommend also watching this video as it gives a good background to the regulation:
https://www.investopedia.com/terms/s/sarbanesoxleyact.asp

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Question List (38q): Question 1: What is the purpose of the Sarbanes-Oxley Regulation?...; Question 2: The legal principle of insurable interest means which of the...; Question 3: Which of the following statements about binomial distributio...; Question 4: Which of the following will you put into box 6?...; Question 5: An interconnected supply chain would have what affect on the...; Question 6: A company with a large risk appetite would do which of the f...; Question 7: Petra Ltd is a manufacturer of upmarket baked goods and they...; Question 8: Yusef is a new procurement manager at FRD Incorporated. He i...; Question 9: Fraud committed by an employee within a business is what typ...; Question 10: What would happen if a company enacts its Contingency Agreem...; Question 11: Which of the following is an example of hedging?...; Question 12: Logistics Risks are caused by......; Question 13: ISO 20400 represents what area of business?...; Question 14: Company X is a large company which is traded on the UK stock...; Question 15: Which of the following will you put into box 5?...; Question 16: Which of the following is not a benefit of having a continge...; Question 17: Which of the following will you put into box 1?...; Question 18: Which of the following will you put into box 2?...; Question 19: John is a mid-level manager and has created a risk / reward ...; Question 20: Maple Tree Limited is a Canadian company who has recently si...; Question 21: In an emergency situation, put the following phases into chr...; Question 22: The USA Foreign Corrupt Practices Act (FCPA) is further reac...; Question 23: Portobello is an Italian manufacturing company that produces...; Question 24: Chloe is a procurement manager at Ruby Company. She has been...; Question 25: When would a company use the Stakeholder Salience Model?...; Question 26: Risk should be a 'golden thread' that links all of the organ...; Question 27: Which of the following is a method for approaching risks?...; Question 28: Which of the following is a quantative method for completing...; Question 29: ISO 31000 is built on 11 guiding principles. Identify THREE ...; Question 30: Which of the following will you put into box 5?...; Question 31: Which of the following statements is true about a Disaster R...; Question 32: Dave is a procurement manager for a chocolate factory who is...; Question 33: What is ISO28000?; Question 34: A black swan event is what type of occurrence?...; Question 35: Which of the following will you put into box 8?...; Question 36: Which of the following statements about normal distribution ...; Question 37: Which of the following is an example of hedging?...; Question 38: Which of the following will you put into box 6?...

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