312-49 · Question #544
Which among the following is an act passed by the U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations?
The correct answer is C. SOX. The Sarbanes-Oxley Act (SOX) was signed into law in July 2002 by U.S. Congress in direct response to major corporate accounting scandals such as Enron, WorldCom, and Tyco. SOX mandates strict financial record-keeping, internal controls, and executive accountability to protect…
Question
Which among the following is an act passed by the U.S. Congress in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations?
Options
- AHIPAA
- BGLBA
- CSOX
- DFISMA
How the community answered
(36 responses)- A3% (1)
- B6% (2)
- C89% (32)
- D3% (1)
Explanation
The Sarbanes-Oxley Act (SOX) was signed into law in July 2002 by U.S. Congress in direct response to major corporate accounting scandals such as Enron, WorldCom, and Tyco. SOX mandates strict financial record-keeping, internal controls, and executive accountability to protect shareholders and the public from fraudulent corporate accounting practices. HIPAA (A) governs health information privacy. GLBA (B) - the Gramm-Leach-Bliley Act - addresses financial institution data privacy for consumers. FISMA (D) - the Federal Information Security Management Act - governs information security for federal agencies. Only SOX directly addresses corporate accounting fraud and investor protection.
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