Final answer:
The Sarbanes-Oxley Act and the Dodd-Frank Act are significant laws in the United States that impact business operations. The Sarbanes-Oxley Act increases confidence in financial information provided by public corporations, while the Dodd-Frank Act aims to reform the financial system and prevent another financial crisis.
Step-by-step explanation:
The Sarbanes-Oxley Act and the Dodd-Frank Act are significant laws in the United States that impact business operations.
The Sarbanes-Oxley Act, enacted in 2002, was a response to major accounting scandals and aims to increase confidence in financial information provided by public corporations. This act establishes stricter regulations and requirements for financial reporting, internal controls, and independent audits. It also created the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing profession.
The Dodd-Frank Act, passed in 2010, aims to reform the financial system and prevent another financial crisis. It introduced regulations for financial institutions and created agencies such as the Consumer Financial Protection Bureau (CFPB) to protect consumers. This act addresses issues such as transparency, accountability, and systemic risk.