The Sarbanes-Oxley Act of 2002 holds a public company's ________ responsible for the accuracy of the company's financial statements.
A) managers
B) internal auditors
C) external legal counsel
D) internal legal counsel
E) Securities and Exchange Commission agent

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 holds a company's managers responsible for ensuring the accuracy and reliability of the company's financial disclosures. This means that they must establish and maintain internal controls that are designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with generally accepted accounting principles (GAAP). The Act also requires CEOs and CFOs to certify that the financial statements and disclosures in their company's periodic reports are accurate and complete.

The Sarbanes-Oxley Act of 2002 Holds a Public Company's ________