Which of the following is true of the Sarbanes-Oxley Act?
A) It was passed in 2000 by Congress to encourage free trade between Canada, Mexico, and the United States.
B) It was passed in 2002 by Congress to make certain that publicly traded companies follow accounting controls that could reduce the likelihood of illegal behavior.
C) It was passed in 2006 by Congress to ensure stricter adherence of guidelines in the hiring practices of immigrant workers in the American workforce.
D) It was passed in 2004 by Congress to encourage foreign direct investments by providing tax subsidies to increase the rate of return for investments.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was passed in 2002 by Congress to increase transparency, accountability, and oversight of publicly traded companies' financial reporting and accounting practices after high-profile accounting scandals such as Enron and WorldCom. It requires companies to adhere to rigorous accounting controls and establishes criminal penalties for those who engage in fraudulent behavior.

Which of the Following Is True of the Sarbanes-Oxley Act