Question

The Sarbanes-Oxley Act (SOX) was enacted in 2002 required MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors.

a. True
b. False

Answer 1

False. The Sarbanes-Oxley Act enacted in 2002 did not require MNCs and other firms to implement an easily monitored internal reporting process. Instead, it focused on financial reporting and internal controls to prevent accounting fraud.

Step-by-step explanation:

The statement is false. The Sarbanes-Oxley Act (SOX) enacted in 2002 did not specifically require MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors. However, the act did establish requirements for financial reporting and internal controls to prevent accounting fraud and increase transparency.