Jorge and Sebastian have noticed that what happened with many of these companies influenced the passage of the Sarbanes-Oxley Act. They begin to think about this act and how it has impacted their own job duties as employees of Vesco Industries. They discuss things that have happened since they began working there.
1. When Jorge and his co-workers completed the end-of-quarter income statement, Vesco's chief financial officer, Desmond Harris, made a trip to the accounting department to review the financial reporting materials. Jorge recalls that Mr. Harris had once mentioned that his approval was a requirement under this act that was at one time not necessary.
a. What provision of the Sarbanes-Oxley Act does Mr. Harris's review address? (5 points)
b. What made this provision necessary to add to this law? (5 points)
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