객관식
How has the Sarbanes-Oxley Act (SOX) most significantly affected the responsibilities of accountants in public companies?
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6. Internal Controls and Reporting Cash
Sarbanes-Oxley Act
객관식
What was one outcome of the Sarbanes-Oxley Act of 2002?
A
The requirement for all companies to use cash-basis accounting
B
The elimination of the double-entry accounting system
C
The removal of auditor independence requirements
D
The establishment of the Public Company Accounting Oversight Board (PCAOB)
검증된 단계별 안내1
Understand the context of the Sarbanes-Oxley Act of 2002, which was enacted to improve corporate governance and restore investor confidence after major accounting scandals like Enron and WorldCom.
Recognize that the Act introduced several reforms, including stricter regulations for financial reporting, auditor independence, and internal controls.
Learn that one key outcome of the Act was the establishment of the Public Company Accounting Oversight Board (PCAOB), which oversees the audits of public companies to ensure compliance with standards and protect investors.
Clarify that the PCAOB is responsible for setting audit standards, inspecting audit firms, and enforcing compliance with regulations to enhance the reliability of financial statements.
Note that the other options provided in the question are incorrect because the Act did not mandate cash-basis accounting, eliminate double-entry accounting, or remove auditor independence requirements; instead, it strengthened auditor independence.
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