Question

Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?

a. Ensure fair labor practices
b. Enhance environmental regulations
c. Improve financial reporting and corporate governance
d. Strengthen antitrust laws

Answer 1

The Sarbanes-Oxley Act of 2002 aims to improve financial reporting and corporate governance to protect investors from accounting fraud following major scandals.

Step-by-step explanation:

The primary intent of the Sarbanes-Oxley Act of 2002 is to improve financial reporting and corporate governance. This piece of legislation was enacted in response to a series of major accounting scandals that shook investor confidence, such as those involving Enron, Tyco International, and WorldCom. The government's goal with Sarbanes-Oxley was to enhance the reliability of financial information provided by public corporations, thereby protecting investors from the risks associated with accounting fraud.

Answer 2

The Sarbanes-Oxley Act of 2002 was designed to improve financial reporting and corporate governance, in direct response to high-profile accounting scandals.

Step-by-step explanation:

The primary intent of the Sarbanes-Oxley Act of 2002 is c. Improve financial reporting and corporate governance. This act was established in response to major accounting scandals involving corporations such as Enron, Tyco International, and WorldCom. The aim was to restore public confidence in financial reports and protect investors by ensuring that public corporations provide accurate and reliable financial information. The Sarbanes-Oxley Act introduced stringent reforms to enhance corporate responsibility, enhance financial disclosures, and combat corporate and accounting fraud.