Multiple Choice
Under the Sarbanes-Oxley Act, how are employees protected when they file a claim regarding corporate fraud or violations of securities laws?
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6. Internal Controls and Reporting Cash
Sarbanes-Oxley Act
Multiple Choice
Which of the following is NOT a significant objective of the Sarbanes-Oxley (SOX) Act?
A
To regulate the setting of interest rates by the Federal Reserve
B
To enhance the independence of external auditors
C
To improve the accuracy and reliability of corporate disclosures
D
To increase the personal accountability of senior executives for financial statements
Verified step by step guidance1
Understand the Sarbanes-Oxley (SOX) Act: The SOX Act was enacted in 2002 to address corporate fraud and improve the reliability of financial reporting. It focuses on corporate governance, accountability, and transparency.
Review the objectives of the SOX Act: Key objectives include enhancing the independence of external auditors, improving the accuracy and reliability of corporate disclosures, and increasing the personal accountability of senior executives for financial statements.
Analyze the given options: Compare each option against the objectives of the SOX Act. Determine which option does not align with the Act's primary goals.
Focus on the option 'To regulate the setting of interest rates by the Federal Reserve': This is unrelated to the SOX Act, as the regulation of interest rates is the responsibility of the Federal Reserve, not the SOX Act.
Conclude that the correct answer is the option that does not align with the SOX Act's objectives, which is 'To regulate the setting of interest rates by the Federal Reserve.'
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