Question

The Sarbanes-Oxley Act: ______

A) was enacted, in part, to bring about reform in companies' financial reporting processes.

B) arose because of several accounting scandals that rocked the public's confidence in published financial statements.

C) has distinct guidelines for reporting on an organization's internal control practices.

D) contains provisions whereby the chief executive officer (CEO) and chief financial officer (CFO) can be held criminally responsible if their firm's financial statements are found to be fraudulent in nature.

E) All of the answers are correct.

Answer 1

The Sarbanes-Oxley Act arose because of several accounting scandals that rocked the public's confidence in published financial statements. It was enacted, in part, to bring about reform in companies' financial reporting processes.

It has distinct guidelines for reporting on an organization's internal control practices and contains provisions whereby the chief executive officer (CEO) and chief financial officer (CFO) can be held criminally responsible if their firm's financial statements are found to be fraudulent in nature.

Option E All of the answers are correct is the correct option