The Sarbanes-Oxley Act:
A)makes the officers of a public corporation personally responsible for the firm's financial statements.
B)requires all corporations to fully disclose its financial dealings to the general public.
C)places the responsibility for a firm's financial statements solely on the chief financial officer.
D)requires that the board of directors be solely responsible for the firm's financial dealings.
E)places total responsibility for the financial statements of a firm on the auditor who certifies the statements.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act makes the officers of a public corporation personally responsible for the firm's financial statements. The act was enacted in 2002 in response to corporate accounting scandals, such as Enron and WorldCom, to improve corporate governance and increase transparency and accountability for financial reporting. The act requires CEOs and CFOs to personally certify the accuracy of financial statements and imposes criminal penalties for certifying false or misleading statements.