The Sarbanes-Oxley Act of 2002,

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 made improvements to some of the existing regulations, such as increasing the transparency and accuracy of financial reporting, strengthening audit committees, and imposing stricter penalties for fraudulent activity. However, it also increased the costs of corporate governance overall. It was not obsolete before it was passed and not only focused on accounting standards, but also addressed broader corporate governance issues. The Sarbanes-Oxley Act of 2002 made improvements to some of the existing regulations, such as increasing penalties for securities fraud, requiring CEOs and CFOs to certify financial statements, and establishing the Public Company Accounting Oversight Board to oversee auditors. It did not reduce the costs of corporate governance, was not obsolete before it was passed, and did focus on accounting standards but also addressed other corporate governance issues.