Question

The sarbanes-oxley act requires companies to establish ethics codes, develop employee complaint systems, and have antiretaliation policies for employees who act as whistle blowers to identify wrongful actions.

Answer 1

The Sarbanes-Oxley Act requires companies to establish ethics codes, develop employee complaint systems, and have anti-retaliation policies for whistle-blowers.

Step-by-step explanation:

The Sarbanes-Oxley Act is legislation that requires companies to establish ethics codes, develop employee complaint systems, and have anti-retaliation policies for employees who act as whistle-blowers to identify wrongful actions.

This act was enacted in response to major accounting scandals involving prominent corporations such as Enron, Tyco International, and WorldCom. Its purpose is to increase confidence in financial information provided by public corporations and to protect investors from accounting fraud.

The Sarbanes-Oxley Act aims to promote transparency, ethics, and accountability in business practices, which are crucial for maintaining the trust of stakeholders and ensuring the integrity of financial reporting.

Answer 2

This statement is true

Employees who work for publicly traded companies or companies that are required to file certain reports with the Securities and Exchange Commission

(SEC) are protected from retaliation for reporting alleged violations of mail, wire, bank, or securities fraud; violations of rules or regulations of the SEC; or federal laws relating to fraud against shareholders.