Which of the following is a requirement stated by the Sarbanes-Oxley Act?
A)This act requires that the Federal Reserve Board take up the task of certifying public accountants.
B)This act requires firms to separate their consulting and auditing businesses.
C)This act limits the types of assets commercial banks can buy.
D)This act limits the use of derivative instruments.
E)This act requires that firms employ their own private accountants.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act, enacted in response to financial scandals, requires firms to maintain independence between their auditing and consulting services to prevent conflicts of interest and ensure the integrity of financial reporting.

Which of the Following Is a Requirement Stated by the Sarbanes-Oxley