In the wake of many scandals with major corporations involving fraud and the deception of investors and regulators, which of the following laws was passed to govern accounting and financial records and disclosures?
In the wake of many scandals with major corporations involving fraud and the deception of investors and regulators, which of the following laws was passed to govern accounting and financial records and disclosures?
The Sarbanes-Oxley Act (SOX) was passed in response to major scandals involving fraud and the deception of investors and regulators by major corporations. It governs accounting and financial records and disclosures to protect shareholders and the general public from accounting errors and fraudulent practices in enterprises.
D. SOX
The Sarbanes-Oxley Act (SOX) was enacted in response to major corporate scandals, such as Enron and WorldCom, to ensure greater transparency and accountability in corporate financial reporting and disclosures. SOX imposes strict reforms to improve the accuracy and reliability of corporate disclosures and to protect investors from fraudulent practices.