Question

Sarbanes-Oxley Act of 2002 requires every ________ company to both have a _______ _______ system in place and prohibit ________ against any employee or other person who reports questionable activities using the _______ _______ system.

a) Public, Reporting Hotline, Retaliation, Whistleblower
b) Private, Audit Trail, Discrimination, Fraud Reporting
c) Government, Internal Control, Punishment, Compliance Hotline
d) Nonprofit, Ethics Code, Promotion, Grievance System

Answer 1

The Sarbanes-Oxley Act requires public companies to have a whistleblower hotline and prohibits retaliation against reporters of fraudulent activities.

Step-by-step explanation:

The Sarbanes-Oxley Act of 2002 requires every public company to both have a whistleblower hotline system in place and prohibit retaliation against any employee or other person who reports questionable activities using the whistleblower hotline system. This legislation was enacted in response to major accounting scandals with corporations such as Enron and WorldCom. The goal of the act is to protect investors by increasing transparency and accountability in corporate financial reporting.