Asked by Jonique Smith on Jun 05, 2024

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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.
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KF
Kristi FullerJun 09, 2024
Final Answer :
D
Explanation :
The Sarbanes-Oxley Act was enacted in response to financial scandals to prevent financial statement fraud and improve the accuracy and reliability of corporate financial reporting among public companies.