Final answer:
The section of the Sarbanes-Oxley Act requiring CEOs and CFOs to certify financial reports is Title III Corporate Responsibility. This was implemented in response to corporate scandals to prevent accounting fraud and enforce transparency for investor protection.
Step-by-step explanation:
The section of the Sarbanes-Oxley Act that requires a company's CEO and CFO to certify quarterly and annual reports is Title III Corporate Responsibility. This provision was a direct response to the lack of accountability perceived in the corporate scandals such as those involving Enron, Tyco International, and WorldCom. These scandals highlighted the need for stringent measures to ensure transparency in financial reporting, leading to reforms that aimed to bolster investor confidence and prevent accounting fraud.
Moreover, the corporate governance structure, which includes the board of directors, the auditing firm, and large investors, plays a crucial role in monitoring and overseeing the practices of top executives to ensure the integrity of a company's financial disclosures. The failure of this governance in cases like Lehman Brothers showcases the importance of strict regulatory requirements like Sarbanes-Oxley.