“Sarbanes Oxley” is a law created by congress to; A. Help regulators with preven

Question

“Sarbanes Oxley” is a law created by congress to;

A. Help regulators with preventing unethical behavior at the senior management and board levels

B. Place the entire burden of fraudulent accounting on companies’ auditors

C. Requires senior management with board seats and all board members to personally sign off on a company’s financial statements, which makes board members liable for fraudulent activity. The company’s auditors are also held responsible for the quality and truthfulness of all financial reporting

Explanation / Answer

Ans:

Option A

Help regulators with preventing unethical behavior at the senior management and board levels.

Sarbanes-Oxley Act of 2002 was brought to protect investors from fraudulent accounting practices followed by corporations.For this purpose disclosures in financial statements were improved,requirements for establishment of adequate internal controls are place and  certifing the accuracy of the reported financial statement is made mandatory.

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