The importance to the accounting profession of the Sarbanes-Oxley Act is that
A) bribery will be eliminated
B) management will not override the company's internal controls
C) management are required to certify their internal control system
D) firms will not be exposed to lawsuits

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act requires management to certify the effectiveness of their internal control system. This is important to the accounting profession as it helps to ensure the accuracy and reliability of financial reporting. It also increases transparency and accountability, which helps to maintain public trust in the accounting profession. The act also establishes penalties for those who engage in fraud or other illegal activities, further reinforcing the importance of ethical conduct in accounting.

The Importance to the Accounting Profession of the Sarbanes-Oxley Act