The importance to the accounting profession of the Sarbanes-Oxely Act is that
A) bribery will be eliminated
B) management will not override the company's internal controls
C) management are required to certify their internal control system
D) firms will not be exposed to lawsuits

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires management to certify the effectiveness of their internal control systems, which is important as it ensures that the financial data reported by companies is accurate and reliable. This is crucial for the accounting profession as it relies on accurate financial information to perform its duties. The Act also includes provisions aimed at preventing fraudulent financial reporting, which helps to maintain the integrity of financial markets and protects investors.

The Importance to the Accounting Profession of the Sarbanes-Oxely Act