Question

All the following are changes made by The Sarbanes-Oxley Act(SOX) except?

1) The requirements of an internal control assessment by management
2) Protection for "whistle blowers"
3) Less oversight by the board of directors
4) The requirement of an internal control report by the independent auditor
5) Stronger penalties and fines for management fraud

Answer 1

The Sarbanes-Oxley Act (SOX) of 2002, did not lead to less oversight by the board of directors; on the contrary, it sought to increase board oversight among other measures to protect investors and improve corporate disclosures.

Step-by-step explanation:

The Sarbanes-Oxley Act (SOX), enacted in 2002, brought about several changes designed to protect investors by improving the accuracy and reliability of corporate disclosures. The changes made by SOX include the requirements of an internal control assessment by management, protection for "whistle blowers", and the requirement of an internal control report by the independent auditor, as well as stronger penalties and fines for management fraud. However, SOX did not lead to less oversight by the board of directors; in fact, it advocated for more rigorous oversight.