Final answer:
The statement is true; Congress passed the Sarbanes-Oxley Act in 2002 with the intent to end future accounting scandals and renew investor confidence by imposing stricter regulations on corporate financial practices.
Step-by-step explanation:
Congress passed the Sarbanes-Oxley Act of 2002 in response to a series of major accounting scandals involving corporations like Enron, Tyco International, and WorldCom. The truth of the statement is: True.
The Act aimed to enhance corporate governance and restore investor trust by improving the accuracy and reliability of corporate disclosures in financial statements and documents. Key provisions included the establishment of new accountability standards for corporate boards and auditors, enhanced financial disclosure requirements, and increased penalties for corporate and executive wrongdoing.
The Sarbanes-Oxley Act was designed to prevent future accounting scandals by mandating strict reforms to improve financial disclosures from corporations and prevent accounting fraud. It sought to increase confidence in financial information provided by publicly traded companies and protect investors from the possibility of financial misdeeds.