As a result of recent accounting scandals involving companies such as Enron and World Com,the Sarbanes-Oxley Act of 2002 was written to protect shareholders of public companies by improving
A)management accounting.
B)corporate governance.
C)professional competence.
D)the corporate legal process.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was written to improve corporate governance, which includes the oversight and management of a company's operations, by mandating stricter financial reporting requirements, strengthening the independence of audit committees, and increasing the penalties for fraudulent activity. While the Act may indirectly affect the other options, its primary focus is on corporate governance.

As a Result of Recent Accounting Scandals Involving Companies Such