An important element of the Sarbanes-Oxley Act of 2002 is that it
A) sets limits on the market shares of large corporations.
B) enables the Fed to actively intervene in the stock market by buying corporate securities during times of falling stock prices.
C) tightens the standards of accountability for the top corporate officers.
D) requires corporate boards of directors to have at least one elected public official as a member.
E) prevents corporations from declaring profits that are higher than they originally estimated.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted in response to a number of corporate accounting scandals, most notably Enron and WorldCom. The Act aimed to improve corporate governance and accountability by requiring greater transparency and disclosure, particularly from senior executives. It also established criminal penalties for certain types of financial fraud and strengthened the powers of the Securities and Exchange Commission (SEC) to enforce regulations. Therefore, option C is the correct answer as it specifically mentions the tightening of standards for accountability for top corporate officers.

An Important Element of the Sarbanes-Oxley Act of 2002 Is