The Sarbanes-Oxley Act of 2002 dealt with conflicts of interest in A. investment banks. B. accounting firms. C. credit-rating agencies. D. all of the above.

Question

Law

Craig Villa

27 December, 03:06

The Sarbanes-Oxley Act of 2002 dealt with conflicts of interest in A. investment banks. B. accounting firms. C. credit-rating agencies. D. all of the above.

+5

Answers (1)

Know the Answer?

Cristopher Kerr · Answer 1

Between years 2000 to 2002, there were huge scandals in the corporate sectors of the United States and that led to the enactment of Sarbanes-Oxley Act (SOX) in 2002. This was done so that the confidence of the investors could be restored.

The act stipulates tougher penalties for securities fraud and prohibited accounting firms from engaging in auditing and consulting services for the same organizations and companies they are also auditing.