The Sarbanes-Oxley Act (SOX)________.
A) requires independent accountants to take responsibility for the accuracy and completeness of the financial reports
B) created the SEC
C) ensures that financial scandals will no longer occur
D) requires companies to take responsibility for the accuracy and completeness of their financial reports

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires companies to take responsibility for the accuracy and completeness of their financial reports, through measures such as implementing internal controls and providing certifications by CEOs and CFOs. While the act aims to increase transparency and accountability in financial reporting, it does not guarantee that financial scandals will never occur. The act also established the Public Company Accounting Oversight Board (PCAOB), which oversees the auditing profession.