Which United States law is focused on accounting and financial practices of organizations?
Which United States law is focused on accounting and financial practices of organizations?
The Sarbanes-Oxley Act (SOX) is focused on accounting and financial practices of organizations. Enacted in 2002, SOX aims to protect investors by improving the accuracy and reliability of corporate disclosures and preventing fraudulent accounting practices. It applies to all public companies and mandates strict reforms to improve financial disclosures and prevent accounting fraud. It is regulated by the Securities and Exchange Commission (SEC).
Answer is B GLBA which pertains to financial institutions, Sarbanes Oxley is for publicly listed orgs.
Both GLBA and SOX have to do with financial practices. But C is the better answer. B. GLBA (Gramm-Leach-Bliley Act): This U.S. federal law, also known as the Financial Services Modernization Act of 1999, focuses on protecting consumers' personal financial information held by financial institutions. It includes provisions to protect personal data, requires financial institutions to explain their information-sharing practices to their customers, and safeguards sensitive data. C. SOX (Sarbanes-Oxley Act): This is the correct answer. The Sarbanes-Oxley Act of 2002 is a U.S. federal law that established comprehensive auditing and financial regulations for public companies. It was enacted in response to financial scandals such as Enron and WorldCom to protect investors from fraudulent accounting activities and improve the accuracy and reliability of corporate disclosures.
GLBA focuses on customer data protection within financial institutions
C is correct answer - SOX
financial practices of organizations? The answer is "C" SOX protects financial information of public companies, and GLBA protects the data of financial institution customers. We are talking about organizations or public companies and not financial industry like a Bank
C is the right answer - SOX is focused on accounting practices, while GLBA is focused on information privacy & security within FSI