Question

Which of the following issues is addressed by the Sarbanes-Oxley legislation?

A) safety aspects of products
B) environmental damages caused by industries
C) disclosure practices of public corporations
D) disclosure practices of private companies

Answer 1

The Sarbanes-Oxley Act was enacted in response to accounting scandals and targets disclosure practices of public corporations, aiming to protect investors and increase confidence in corporate financial reporting. option c is correct

Step-by-step explanation:

The Sarbanes-Oxley Act of 2002 addresses the issue of disclosure practices of public corporations. This legislation was a direct response to major accounting scandals that shook the confidence of investors. High-profile cases involving companies like Enron

Tyco International, and WorldCom highlighted the need for stricter regulation to prevent accounting fraud and protect investors. Sarbanes-Oxley aimed to increase transparency and establish stricter corporate governance measures, ensuring the accuracy and reliability of financial reporting by public companies.

However, this Act does not pertain to the safety aspects of products, environmental damages, or disclosure practices of private companies. option c is correct