Question

U.S. act that requires that all publicly held companies establish internal controls and procedures for financial reporting to reduce the possibility of corporate fraud.

*Consolidated Omnibus Budget Reconciliation Act (Cobra)
*Sarbanes - Oxley Act (SOX)
*Employee Polygraph Protection Act (EPPA

Answer 1

The Sarbanes-Oxley Act (SOX) is the U.S. regulation that mandates internal controls and reporting procedures for publicly held companies to prevent corporate fraud.

Step-by-step explanation:

The act that requires publicly held companies to establish internal controls and procedures for financial reporting to reduce the possibility of corporate fraud is the Sarbanes-Oxley Act (SOX). Enacted in 2002, in the wake of major accounting scandals involving corporations like Enron, Tyco International, and WorldCom, the government designed Sarbanes-Oxley to protect investors by enhancing the accuracy and reliability of corporate disclosures in financial statements. This was a measure to restore public confidence in the financial information provided by public companies and mitigate the risk of corporate malfeasance.