Which of the following statements about the Sarbanes-Oxley Act of 2002 is/are true?
A) The Sarbanes-Oxley Act created the Public Company Accounting Oversight Board and set a new audit-reporting standard.
B) The Sarbanes-Oxley Act created the mechanism for governmental supervision of the liquidation of Enron and Arthur Andersen.
C) The Sarbanes-Oxley Act makes it easier for corporate executives to be tried and sentenced to jail for financial misconduct.
D) a and b
E) a and c

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 (SOX) indeed established the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies, thereby setting new audit standards, and it also increased the penalties for corporate fraud, making it easier for corporate executives to be tried and sentenced for financial misconduct. It did not specifically create a mechanism for the supervision of the liquidation of Enron and Arthur Andersen; those events were catalysts for the Act's creation.

Which of the Following Statements About the Sarbanes-Oxley Act of 2002