The Sarbanes-Oxley Act of 2002 was passed to eliminate many of the disclosure and conflict-of-interest problems of corporations.

Question

Quizplus · Accepted Answer

The statement is correct. The Sarbanes-Oxley Act (also known as SOX) was passed in response to a number of corporate accounting scandals, such as those involving Enron and WorldCom, that highlighted significant problems with corporate transparency and accountability. The act introduced a range of reforms intended to improve financial reporting and oversight, including requirements for more detailed disclosures, independent auditing, and greater accountability for executives and directors. SOX also created the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing profession and ensure compliance with auditing standards.

The Sarbanes-Oxley Act of 2002 Was Passed to Eliminate Many