Question
The Sarbanes–Oxley Act (SOX) is designed to do which of the following?
Catch bad auditors
Catch and control mistakes in the financial reporting
Make financial reporting perfect
Control executive compensation
Catch bad auditors
Catch and control mistakes in the financial reporting
Make financial reporting perfect
Control executive compensation
Answers
GPT-4o mini
The Sarbanes–Oxley Act (SOX) is primarily designed to **catch and control mistakes in financial reporting**. It aims to enhance the accuracy and reliability of financial disclosures and to protect investors from fraudulent accounting activities, following the corporate scandals in the early 2000s. While it also addresses auditor oversight and includes certain provisions related to executive compensation, its main focus is on improving the integrity of financial reporting and the overall accountability of corporations.