Final answer:
The Sarbanes-Oxley Act (SOX) applies to both public and private corporations. SOX aims to improve corporate governance and enhance financial reporting transparency.
Step-by-step explanation:
Answer:
The Sarbanes-Oxley Act (SOX) applies to both public and private corporations.
SOX was enacted in response to accounting scandals involving public companies, such as Enron and WorldCom, but it also applies to private companies that meet certain criteria. The Act aims to improve corporate governance and enhance financial reporting transparency.
Public corporations are required to comply with various provisions of SOX, including establishing internal controls, maintaining accurate financial records, and ensuring independence of the board of directors. Private corporations may also choose to comply voluntarily to improve their credibility and attract investors.