Question

The primary purpose of the Sarbanes-Oxley Act of 2002 is to

Multiple Choice

protect financial managers from investors.

protect investors from corporate abuses.

apply restrictions on foreign firms operating in the United States.

decrease audit costs for U.S. firms.

reduce corporate revenues.

Answer 1

Solution:
	Answer is 2nd option protect investors from corporate abuses.
Working Notes:
	The primary purpose of the Sarbanes-Oxley Act of 2002 is to protect investors from corporate abuses.
	The Sarbanes?Oxley Act? (SOX) was passed by Congress in? 2002, in response? to financial? scandals, including WorldCom and Enron, in which investors lost billions of dollars, and in this scandals corporate were mainly responsible and low laws & regulation for directors of public corporations.
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