Chapter 1, Problem 7EB

Indicate whether each of the following statements is true or false.

1. Section 302 of Sarbanes-Oxley requires the CEO and CFO to review all financial reports and sign the reports.
2. One of the three questions put forth by the Institute of Business Ethics is “Do I mind others knowing what I have done?”
3. Ethical issues may be faced on a small scale, such as making a business decision to produce excess inventory for the sole purpose of trying to influence managers’ bonuses.
4. A manager who spends excess budgeted funds remaining at the end of a fiscal year on unnecessary expenditures thinking that it is better to "use it than lose it” is acting ethically.
5. The Foreign Corrupt Practices Act was implemented in 2001 to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures.