The Sarbanes-Oxley act was passed in 2002 as a Congress's response to the many situations of fraudulent financial reporting discovered during 2001.The intention of the Act was:
A)Police the accounting firms responsible for auditing the corporations.
B)Punish the companies that had been involved in the cases of fraudulent financial reporting.
C)Establish accounting standards that all companies are to follow.
D)Reform accounting, financial reporting, and auditing functions of companies that are publicly traded.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was primarily aimed at reforming accounting, financial reporting, and auditing functions of publicly traded companies. While it did establish some accounting standards, its main focus was on improving the accuracy and reliability of financial reporting through greater transparency and accountability. The act created new oversight mechanisms, such as the Public Company Accounting Oversight Board, and increased penalties for fraud and other financial malfeasance. It also required senior executives to certify that financial statements were accurate and established rules around whistleblower protections.

The Sarbanes-Oxley Act Was Passed in 2002 as a Congress's