120k views
4 votes
Which of the following provides the regulartory authority for internal control requirements?

a. American Accounting Association
b. Institute of Certified Public Accountants
c. The Treadway Commission
d. The Sarbanes-Oxley Act

1 Answer

7 votes

Final answer:

The correct answer is option d. The Sarbanes-Oxley Act provides the regulatory authority for internal control requirements, aiming to protect investors from accounting fraud.

Step-by-step explanation:

The regulatory authority for internal control requirements is provided by d. The Sarbanes-Oxley Act. Passed in 2002, this act came in response to major accounting scandals involving corporations such as Enron, Tyco International, and WorldCom.

The Sarbanes-Oxley Act was designed to increase investor confidence in the financial information provided by public corporations and protect them from accounting fraud.

User Ovidiu Latcu
by
8.1k points