"To maintain public confidence and trust in the financial reporting of companies" is the purpose of
A) the FASB
B) the IRS
C) Sarbanes-Oxley
D) GAAP

Question

Quizplus · Accepted Answer

The purpose of the Sarbanes-Oxley Act is to improve the accuracy and reliability of corporate disclosures, which ultimately serves to maintain public confidence and trust in the financial reporting of companies. The FASB (A) is a standard-setting organization that establishes and improves standards of financial accounting and reporting, while GAAP (D) are the generally accepted accounting principles used in the United States. The IRS (B) is the federal agency responsible for collecting taxes and enforcing tax laws. While it plays a role in financial reporting, it is not primarily focused on maintaining public confidence and trust in financial reporting.

"To Maintain Public Confidence and Trust in the Financial Reporting