What is the fundamental purpose of the Sarbanes-Oxley Act?

Question

Quizplus · Accepted Answer

The fundamental purpose of the Sarbanes-Oxley Act is to penalize fraudulent accounting practices, particularly those that misrepresent financial statements, to protect investors from such practices, and to restore public trust in the integrity of corporate financial information. The act introduced new or expanded requirements for public companies and accounting firms, including the creation of the Public Company Accounting Oversight Board (PCAOB), which is responsible for overseeing the auditing of public companies.

What Is the Fundamental Purpose of the Sarbanes-Oxley Act