The purpose of the Sarbanes-Oxley Act of 2002 is to:
A) restore public confidence and trust in the financial statements of publicly held companies.
B) require all companies to prepare financial statements.
C) protect companies from demands of investors, stockholders, and creditors.
D) do all of these.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted to restore public confidence and trust in the financial statements of publicly held companies. It aimed to increase transparency and accountability in corporate accounting practices and prevent financial fraud, with the goal of protecting investors and the general public. While the Act does require companies to prepare financial statements, this is not its primary purpose, and it does not protect companies from the demands of investors, stockholders, or creditors.

The Purpose of the Sarbanes-Oxley Act of 2002 Is To