Question

The __________ contains many provisions about recordkeeping and destruction of electronic records relating to the management and operation of publicly held companies.

A
Sarbanes-Oxley Act of 2002
B
Computer Security Act of 1987
C
Federal Privacy Act of 1974
D
Privacy Protection Act of 1980

Answer 1

The Sarbanes-Oxley Act of 2002 contains provisions about recordkeeping, particularly for electronic records of publicly held companies, to protect investors and increase confidence in financial data after major accounting scandals.

Step-by-step explanation:

The correct answer is A) Sarbanes-Oxley Act of 2002. This Act contains provisions for the recordkeeping and destruction of electronic records, specifically in relation to the management and operation of publicly held companies. The Sarbanes-Oxley Act was enacted in response to major accounting scandals, such as those involving Enron, Tyco International, and WorldCom. The purpose of the Act was to protect investors by ensuring the accuracy and reliability of corporate disclosures in financial statements, thereby increasing confidence in the financial information provided by public corporations.

By enhancing the accuracy of financial information provided by public corporations, the Act endeavors to bolster investor confidence in the transparency and reliability of such disclosures.