Understanding Sarbanes-Oxley Act Requirements

As companies operate in increasingly complex regulatory environments, they must comply with various governance standards. One essential framework in the United States is the Sarbanes-Oxley Act (SOX), enacted in response to major corporate scandals in the early 2000s. This legislation aims to enhance corporate governance and accountability by implementing stringent regulations on financial reporting and disclosures.

Consider a publicly traded company that has recently been found to have violated some provisions of the Sarbanes-Oxley Act. The company's board of directors is now reviewing its compliance policies and the overall structure of its corporate governance. Among the potential actions the board might take, which of the following best describes a requirement of the Sarbanes-Oxley Act?