Enrico is a CPA for a large company. Recently, he noticed that the company's accounting records significantly overstated the amount of inventory on hand. This led to an overstatement of the assets the company holds. Initially, he brought it to the attention of his supervisor, but when nothing was done to correct the mistake in a timely manner, he decided the best course of action was to report it to the appropriate government official. Although his actions took him outside the company, Enrico was counting on current law, under the ________, to protect him against company retaliation.
A) Cellar-Kefauver Act
B) Sarbanes-Oxley Act
C) Robinson-Patman Act
D) Sherman Act

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was passed in 2002 to protect whistleblowers from intentional company retaliation when reporting illegal and/or unethical accounting concerns to government authorities. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act further helped whistleblowers by allowing them to collect some of the total penalty.

Enrico Is a CPA for a Large Company