The Sarbanes-Oxley Act of 2002 places full responsibility on the board of directors for the accuracy of the reporting system.SOX places more responsibility on all managers (not just accountants)for the accuracy of the reporting system.SOX also places additional responsibilities on the boards of directors and external auditors to reduce the opportunity for errors and fraud.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 places responsibility on both management and the board of directors, but it does not place full responsibility solely on the board. It requires senior executives to certify the accuracy of financial statements and imposes additional responsibilities on auditors and the board to ensure accuracy and prevent fraud.

The Sarbanes-Oxley Act of 2002 Places Full Responsibility on the Board