Question

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

Increase the number of firms that "go dark"

-Decrease the number of corporations that can be publicly traded
-Increase the protections against corporate fraud
-Increase the dividends paid to shareholders
-Limit secondary issues of corporate securities

Answer 1

The primary intent of the Sarbanes-Oxley Act of 2002 was to increase protections against corporate fraud and restore confidence in financial information provided by public corporations.

Step-by-step explanation:

The primary intent of the Sarbanes-Oxley Act of 2002 was to increase the protections against corporate fraud.

This act was passed in response to major accounting scandals involving corporations such as Enron, Tyco International, and WorldCom. It aimed to restore confidence in the financial information provided by public corporations and protect investors from accounting fraud.

By increasing the regulations for financial reporting and corporate governance, the Sarbanes-Oxley Act aimed to prevent fraudulent activities and improve transparency in the corporate sector.