The Sarbanes-Oxley Act of 2002 was designed to increase
A) investor confidence.
B) government ownership.
C) the number of firms.
D) executive salaries.
E) income equality.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 (SOX) was designed to increase investor confidence by strengthening corporate governance, internal controls, and financial disclosures, in response to high-profile corporate scandals such as Enron and WorldCom. Its goal was to restore public trust in the financial reporting and accounting practices of public companies, which had been eroded by unethical and fraudulent behavior. The other options (B, C, D, and E) are not related to the purpose or provisions of SOX.

The Sarbanes-Oxley Act of 2002 Was Designed to Increase