The CEO of Wrenn Corporation is convicted of committing accounting fraud.

The CEO of Wrenn Corporation is convicted of committing accounting fraud. After several in-depth investigations, it is found that although the CEO of the company was not aware of the fraud, he received 1.5 million dollars in the form of bonuses and stock profits during the company’s fraudulent period. The Securities and Exchange Commission orders the company to restate its financial position and furnish the correct financial statements. As per the Sarbanes-Oxley Act, which of the following is a likely consequence that will follow?​

  • ​The company will be asked to merge its auditing and consulting functions.
  • ​The CEO will be asked to return the money that he or she received during the company’s fraudulent period.
  • ​The CEO will be held personally liable for the company’s misconduct during the fraudulent period.
  • ​The company will be allowed to grant personal loans to its executives provided that it can prove the creditworthiness of the executives.

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