Asked by Jonique Smith on Jun 05, 2024
Verified
The Sarbanes-Oxley Act was passed to:
A) prevent financial statement fraud at public companies.
B) replace inventory accounting procedures.
C) improve the accuracy of the company's financial reporting.
D) Both A and C are correct.
Sarbanes-Oxley Act
A U.S. law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.
Financial Statement Fraud
Deliberate manipulation of a company's financial records to present a false picture of its financial condition.
Financial Reporting
The process of producing statements that disclose an organization's financial status to management, investors, and the government.
- Grasp the importance and requirements of regulatory acts such as the Sarbanes-Oxley Act for financial reporting and fraud prevention.
Verified Answer
Learning Objectives
- Grasp the importance and requirements of regulatory acts such as the Sarbanes-Oxley Act for financial reporting and fraud prevention.
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