The Sarbanes-Oxley Act of 2002 has eliminated the problem of firms inflating their financial projections, so stakeholders need not worry about the financial projections of different companies.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 increased regulations and oversight of financial reporting by companies, but it did not completely eliminate the problem of firms inflating their financial projections. Stakeholders should still be cautious when reviewing and relying on financial projections from different companies.

The Sarbanes-Oxley Act of 2002 Has Eliminated the Problem of Firms