Question

Which piece of legislation requires management of public companies to assess and report on the adequacy of internal controls?

Answer 1

The Sarbanes-Oxley Act requires management of public companies to assess and report on the adequacy of internal controls.

Step-by-step explanation:

The piece of legislation that requires management of public companies to assess and report on the adequacy of internal controls is the Sarbanes-Oxley Act of 2002. This act was a response to major accounting scandals involving corporations like Enron, Tyco International, and WorldCom. Sarbanes-Oxley was designed to increase confidence in financial information provided by public corporations and protect investors from accounting fraud.