Question

According to most large company CFOs, what impact does SOX (Sarbanes-Oxley Act) have?

A. It has no impact on large company CFOs

B. It simplifies financial reporting

C. It increases financial regulations and compliance requirements

D. It reduces the need for financial oversight

Answer 1

The Sarbanes-Oxley Act increases financial regulations and compliance requirements for large companies, according to most CFOs. The correct option is C.

Step-by-step explanation:

According to most large company CFOs, the impact the Sarbanes-Oxley Act (SOX) has on large companies is that it increases financial regulations and compliance requirements. The Sarbanes-Oxley Act was enacted in 2002 in response to major accounting scandals involving corporations such as Enron, Tyco International, and WorldCom.

Its primary goal was to increase investor confidence in the financial information provided by public corporations and to protect investors from accounting fraud. Therefore, the correct answer to the question is C. It increases financial regulations and compliance requirements.