The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act, was passed in 2002 in response to accounting scandals such as Enron and WorldCom. The act mandated that corporations establish and maintain internal controls for financial reporting, and required top executives to personally certify the accuracy of financial statements. It also created the Public Company Accounting Oversight Board to oversee auditors of public companies. Thus, the statement that the Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions is true.

The Sarbanes-Oxley Act Was Designed to Hold Corporations Accountable for Internal