The Sarbanes-Oxley Act of 2002 holds the CFO legally accountable for the accuracy of their firm's financial statements.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 (SOX) holds the CFO (Chief Financial Officer) and other top executives legally responsible for the accuracy and integrity of their firm's financial statements. This includes the requirement for the CEO and CFO to certify the accuracy of the financial statements, and for the CFO to oversee the company's financial reporting process, internal controls, and compliance with accounting standards. The act was passed in response to financial scandals such as Enron and WorldCom, and aims to improve corporate governance, transparency, and accountability.

The Sarbanes-Oxley Act of 2002 Holds the CFO Legally Accountable