Final answer:
The Sarbanes-Oxley Act of 2002 focuses on financial reporting and corporate governance, formulated in response to major accounting scandals, aiming to protect investors from fraud and restore trust in corporate financial statements.
Step-by-step explanation:
The Sarbanes-Oxley Act of 2002 sets strict rules regarding financial reporting and corporate governance. This act was implemented in response to several major accounting scandals involving companies such as Enron, Tyco International, and WorldCom. These scandals shook investor confidence and highlighted the need for stronger regulations to protect against accounting fraud.
The Sarbanes-Oxley Act was designed to restore trust in financial reports provided by public corporations and includes measures such as stricter oversight of accounting practices and greater accountability for corporate executives.