The 2002 Sarbanes-Oxley Act was designed to ________.
A) limit the compensation that could be paid to corporate CEOs
B) eliminate the many disclosure and conflict-of-interest problems of corporations
C) provide uniform international accounting standards
D) provide the guidelines to minimize the tax

Question

Quizplus · Accepted Answer

The 2002 Sarbanes-Oxley Act was designed to address the disclosure and conflict-of-interest problems that were uncovered in corporate scandals such as Enron and WorldCom. It established new requirements for corporate accountability, including increased financial disclosures, greater independence of auditors, and tougher penalties for fraudulent actions. It did not address CEO compensation, international accounting standards, or tax minimization.

The 2002 Sarbanes-Oxley Act Was Designed to ________