Sharon, a CPA for a large firm, noticed that the company's accounting records drastically overstated the amount of inventory on hand, which led to overstating the assets of the firm. Initially, she brought it to the attention of her supervisor, but when nothing was done to correct the mistake in a timely manner, she decided the best course of action was to report it to the appropriate government official. Although her actions took her outside the company, she was counting on current law, under the ____________, to protect her 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 enacted to protect whistleblowers like Sharon who report corporate fraud or malfeasance. It includes provisions to protect employees from retaliation, such as termination or demotion, for reporting such actions to the appropriate authorities. The other laws listed do not specifically address whistleblower protection.

Sharon, a CPA for a Large Firm, Noticed That the Company's