What is the main purpose of the Sarbanes-Oxley Act of 2002?
A) To increase the accuracy and reliability of corporate disclosures of financial information.
B) To ensure that CEOs are adequately compensated for the risks they face in terms of corporate governance.
C) To amend NAFTA to be more favorable to U.S. interests.
D) To limit the ability of drug companies to engage in direct-to-consumer advertising.
E) To limit the ability of the media to obtain confidential corporate information.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted in response to a number of major corporate and accounting scandals, including those affecting Enron, Tyco International, and WorldCom. Its main purpose is to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.

What Is the Main Purpose of the Sarbanes-Oxley Act of 2002