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What aspect(s) of SOX might reduce opportunities for fraud?

User Igorgue
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Final answer:

The Sarbanes-Oxley Act includes internal controls, independent audits, and whistleblower protection to reduce opportunities for fraud.

Step-by-step explanation:

The Sarbanes-Oxley Act (SOX) includes several aspects that help reduce opportunities for fraud:

  1. Internal Controls: SOX requires public companies to establish and maintain strong internal controls over financial reporting. These controls help prevent and detect fraudulent activities by ensuring accurate and reliable financial information.
  2. Independent Audits: SOX mandates that public companies have their financial statements audited by external independent auditors. This helps enhance the credibility and accuracy of the financial information provided.
  3. Whistleblower Protection: SOX provides protection to employees who report suspected fraudulent activities within their organizations. This encourages employees to come forward with information about potential fraud.
User Vijay Kumavat
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