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.

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.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

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