EB7.

LO 1.4Indicate whether each of the following statements is true or false.

Section 302 of Sarbanes-Oxley requires the CEO and CFO to review all financial reports and sign the reports.

One of the three questions put forth by the Institute of Business Ethics is "Do I mind others knowing what I have done?"

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.

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.

The Foreign Corrupt Practices Act was implemented in 2001 to protect investors by enhancing the accuracy and reliability of corporate financial statements and disclosures.

Statement 1, 2 and 3 are correct whereas statement 4 and 5 are false statements.

Explanation:

Statement 1 is correct because Section 302 of Sarbanes-Oxley states that the principal executive and the CFO must review the report and sign it as well to certify that these reports are accurate.

Statement 2 is correct because it is one of the 3 questions put forth by the Institute of Business Ethics.

Statement 3 is correct because ethical issues can be faced on smaller scale. It can be faced while purchasing from small stores where they we can easily manipulate the facts.

Statement 4 is false because a manager who is manipulating facts is not acting ethically.

Statement 5 is also incorrect because Foreign Corrupt Practices Act was enacted to restrain people and entities to bribe government officials of other countries for assistance in obtaining or restraining business.