Certification in Supplier Diversity Practice Exam

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What is the requirement under Section 409 of SOX?

Timely reporting of financial performance
Maintenance of off-balance-sheet records
Creation of annual budgets
Preparation of investor presentations

The correct answer is: Timely reporting of financial performance

The requirement under Section 409 of the Sarbanes-Oxley Act (SOX) emphasizes the necessity for timely reporting of financial performance. This section aims to ensure that public companies disclose material changes in their financial condition or operations on a rapid and current basis. Timely reporting is crucial because it enhances transparency and helps investors make informed decisions. By ensuring that financial information is up-to-date and readily available, Section 409 strives to protect investors and improve the integrity of financial reporting. The other options address aspects of financial management or communication but do not meet the specific requirements set forth by Section 409. It does not mandate the maintenance of off-balance-sheet records, the creation of annual budgets, or the preparation of investor presentations, as these tasks are not explicitly linked to the timely disclosure of financial performance.