In response to corporate scandals such as Enron and WorldCom,in 2002 the U.S.Congress passed a law that requires,among other things,that CEOs and CFOs certify the accuracy and appropriateness of their firm's financial statements and increases the penalties against them if the financial statements later prove to be fraudulent.The name of this act is
A) the Glass-Steagall Act.
B) the Sarbanes-Oxley Act.
C) the Accuracy in Accounting Act.
D) the McCain-Feingold Act.

Question

Quizplus · Accepted Answer

The law that requires CEOs and CFOs to certify the accuracy and appropriateness of their firm's financial statements and increases the penalties against them if the financial statements later prove to be fraudulent is the Sarbanes-Oxley Act. This act was passed by the U.S. Congress in 2002 in response to corporate scandals like Enron and WorldCom. The other options listed do not pertain to the topic of financial statement certification and penalties for fraudulent statements.

In Response to Corporate Scandals Such as Enron and WorldCom,in