Internal control is so critical to a company that Congress passed the:
A) Sarbanes-Oxley Act of 2002.
B) Kemp-Oxley Act of 2002.
C) Economic Stimulus Law of 2010.
D) Public Company Accounting Oversight Board Act of 2002.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was passed by Congress in response to corporate accounting scandals such as Enron and WorldCom. It requires companies to establish and maintain internal control over financial reporting, and mandates that management attest to the effectiveness of these controls. The act also created the Public Company Accounting Oversight Board (PCAOB) to oversee public accounting firms that audit publicly traded companies.

Internal Control Is So Critical to a Company That Congress