The goal of the Sarbanes-Oxley Act of 2002 is to
A) protect the U.S. government from fraudulent acts committed by U.S. companies.
B) protect investors from fraud and other risks by improving the reliability and accuracy of financial statements.
C) protect companies from the U.S. government interfering in how they present financial statements.
D) protect investors from the risk of increased taxes impacting the financial statements of companies in which they are invested.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted in response to a number of major corporate and accounting scandals, including those affecting Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom. Its main goal is to protect investors by making the financial practices of companies more transparent and by ensuring the accuracy and reliability of corporate disclosures, including financial statements. This is achieved through implementing stricter regulations on auditing and financial reporting.

The Goal of the Sarbanes-Oxley Act of 2002 Is to