Question

The sarbanes-oxley act of 2002 established requirements for ____. noncompliance can result in penalties of

Answer 1

The Sarbanes-Oxley Act of 2002 aims to increase transparency in financial disclosures of public corporations and prevent accounting fraud following major scandals. It establishes rigorous requirements, and noncompliance can lead to severe penalties.

Step-by-step explanation:

The Sarbanes-Oxley Act of 2002 established requirements for improved financial disclosures and greater internal controls in public corporations. This act was a legislative response to a number of major accounting scandals that shattered investor confidence, with notable examples being Enron, Tyco International, and WorldCom. The Sarbanes-Oxley Act aims to prevent accounting fraud and protect investors by ensuring that financial information is accurate and transparent. Noncompliance with these requirements can result in significant penalties, including fines and imprisonment for corporate executives.

Answer 2

The Sarbanes-Oxley Act of 2002 established new requirements for corporate governance to prevent fraudulent behavior in business. An accounting oversight board and financial reporting requirements including instituting a code of conduct for senior financial officers are the main focuses of this act.