Which of the following is not a reason that Congress passed the Sarbanes-Oxley Act of 2002? a. To require companies to maintain strong and effective internal controls over the preparation of financial statements b. To answer the public outcry related to the financial scandals of the early 2000s c. To regulate private companies d. To require companies to maintain strong and effective internal controls over the recording of financial transactions

Question

Social Studies

Hurst

1 January, 10:54

Which of the following is not a reason that Congress passed the Sarbanes-Oxley Act of 2002? a. To require companies to maintain strong and effective internal controls over the preparation of financial statements b. To answer the public outcry related to the financial scandals of the early 2000s c. To regulate private companies d. To require companies to maintain strong and effective internal controls over the recording of financial transactions

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Answers (1)

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Destiney Schwartz · Answer 1

Option A.

Explanation:

To regulate private companies, is the right answer.

The Sarbanes-Oxley Act of 2002 is a federal law of the United States that placed new or extended terms for all public company boards, supervision and public accounting firms of the United States. Several requirements of the Act also refer to privately owned businesses, such as the deliberate damage of testimony to prevent national research. Given all the options were reasons for the enactment of the act except option A.