Sarbanes-Oxley Act and Corporate Governance

Easy Corporate Governance Regulatory Environment

ABC Corporation is a publicly traded company that is subject to various regulatory requirements to ensure good corporate governance practices. Recently, the firm's board of directors has been reviewing compliance with the Sarbanes-Oxley Act (SOX), which aims to protect investors by improving the accuracy and reliability of corporate disclosures. In this context, the board is particularly focused on internal controls and processes that prevent financial misreporting.

Which of the following statements regarding the regulatory environment surrounding corporate governance in relation to the Sarbanes-Oxley Act is accurate?

The Sarbanes-Oxley Act primarily reduces the financial reporting requirements for smaller public companies.

The Sarbanes-Oxley Act mandates that companies establish internal controls over financial reporting.

The Sarbanes-Oxley Act requires that companies publish their annual audits in a foreign format.

Hint

Submitted12.0K

Correct8.0K

% Correct67%