Which law or regulation requires that public companies must maintain strong internal control systems?

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act (SOX) of 2002 requires public companies to maintain strong internal control systems, specifically in regards to financial reporting. SOX was enacted in response to the corporate accounting scandals of companies such as Enron and WorldCom. The act mandates that companies maintain a system of internal control to ensure the accuracy and completeness of their financial statements, and requires management to attest to the effectiveness of these controls. Failure to comply with SOX can result in legal and financial penalties.

Which Law or Regulation Requires That Public Companies Must Maintain