Question

Joan Blondell has been CEO of Xenon Corporation for five years. Following an SEC investigation, Xenon and Joan were both charged with fraudulent financial statements. Joan says that she knew nothing about the fraud and felt that the financial reports were accurate.
a. Which of the following statements is true?​
O Joan cannot be charged because she certified the financial statements under SOX.
O Joan cannot be chared with securities fraud if she was not aware of the financial fraud.
O Joan cannot use willful ignorance of defence.
O Joan is not responsible for the financial statements under SOX.

Answer 1

Answer:

O. Joan cannot use willful ignorance of defence.

Explanation:

Joan Blondell is the CEO of the Xenon Corporation and we are assuming here that he did not know about the fraudulent activity which happened under his nose.

Even a layman would understand this that Joan cannot use the willful ignorance of defence and should have known what was happening under his rule.

Hope this helps. Good luck.