Which of the following statements concerning the Sarbanes-Oxley Act of 2002 is true?
A)It strengthened the SEC's ability to prosecute companies that presented misleading accounting data to the public.
B)It cracked down on insider trading.
C)It established rules for IPOs so average investors would not be at a disadvantage.
D)It strengthened the standards for companies which plan to go public.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 strengthened the SEC's ability to prosecute companies that presented misleading accounting data to the public. It also established stricter regulations for financial reporting and corporate governance to prevent corporate fraud. While the act addressed other issues as well, such as auditor independence and whistleblower protection, it did not specifically focus on insider trading or IPO regulations.

Which of the Following Statements Concerning the Sarbanes-Oxley Act of 2002