The ________ Act of 2002 is a federal statute that establishes rules to improve corporate governance,prevent fraud,and add transparency to corporate operations.

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The Sarbanes-Oxley Act of 2002 is a federal law that mandates standards for financial reporting and accounting practices in public companies. It was enacted after high-profile accounting scandals such as Enron and WorldCom which revealed lack of transparency and fraudulent practices of public companies. The act requires public companies to establish effective internal controls and auditing functions as well as provide full and accurate financial statements to the public. The act also imposes penalties to individuals and companies that violate its provisions.

The ________ Act of 2002 Is a Federal Statute That