The Sarbanes-Oxley Act has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act has improved the accuracy and transparency of financial reporting, but it has not completely eliminated the problem of firms inflating their financial projections. Therefore, stakeholders should still exercise caution when assessing the financial projections of different companies.

The Sarbanes-Oxley Act Has Eliminated the Problem of Firms Inflating