Under the Sarbanes-Oxley Act which of the following reforms was introduced in the US:
A)increased disclosures for executive remuneration;
B)whistle blowing protection for all employees and directors;
C)requirements to rotate audit partners every 3 years;
D)the creation of new criminal laws relating to corporate conduct.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act introduced new criminal laws relating to corporate conduct, specifically aimed at preventing accounting fraud and establishing accountability for corporate boards and executives. The Act also established the Public Company Accounting Oversight Board (PCAOB), which oversees auditing firms and requires them to rotate audit partners every five years, but not every three years as stated in option C. Option A is partially correct as the Act did introduce increased disclosures for executive remuneration, but this is not the main focus of the Act. Option B is also partially correct as the Act does provide some protection for whistleblowers, but this is not its primary objective.

Under the Sarbanes-Oxley Act Which of the Following Reforms Was