The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections, so stakeholders no longer have to worry about the reliability of the financial projections of different companies.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act has improved the reliability of financial statements by enhancing transparency and financial disclosures, but it cannot eliminate the possibility of firms inflating their financial projections. Stakeholders still need to exercise caution when evaluating the financial projections of different companies.

The Sarbanes-Oxley Act Has Eliminated the Problem of Firms Inflating