Question

the purpose of this legislation is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. it is the:

Answer 1

The Sarbanes-Oxley Act of 2002 was designed to address and prevent corporate and accounting scandals by setting higher standards of corporate governance, increasing the transparency of financial reporting, and protecting investors.

Step-by-step explanation:

The Sarbanes-Oxley Act of 2002

The legislation being referred to in the question is the Sarbanes-Oxley Act (SOX) of 2002, which was enacted in response to a number of major accounting scandals that shook the corporate world, such as those involving Enron, Tyco International, and WorldCom. These scandals damaged investor trust and highlighted the need for a stricter regulatory framework surrounding corporate governance and financial reporting. The purpose of the Sarbanes-Oxley Act is threefold:

1. To reduce unethical corporate behavior by imposing stricter rules on corporate governance and financial practices.
2. To protect investors from the risk of fraudulent accounting activities and to restore confidence in the public stock markets.
3. To decrease the likelihood of future corporate scandals through enhanced transparency and accountability in financial reporting.