Final answer:
The Sarbanes-Oxley Act brought sweeping changes to auditing and financial reporting practices to increase transparency and protect investors from accounting fraud.
Step-by-step explanation:
The statement is True. The Sarbanes-Oxley Act, also known as the Public Company Accounting Reform and Investor Protection Act, was enacted in 2002 in response to major accounting scandals involving companies like Enron, Tyco International, and WorldCom. This Act introduced significant changes to auditing and financial reporting practices to increase transparency and protect investors from accounting fraud.
The Sarbanes-Oxley Act implemented stringent regulations and oversight measures in response to accounting scandals like Enron and WorldCom. It aimed to enhance corporate governance, accountability, and transparency in financial reporting. By imposing strict standards for internal controls and requiring CEOs and CFOs to certify the accuracy of financial statements, it sought to rebuild investor confidence and safeguard against fraudulent activities in the corporate sector.