The Sarbanes-Oxley Act of 2002 Made Significant Reforms for Public

question 40

Essay

The Sarbanes-Oxley Act of 2002 made significant reforms for public companies and their auditors.
a.Describe the events that led up to the passage of the Act.
b.Describe the major changes made by the Act.

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Definitions:

Gasoline Prices

The cost per unit of gasoline, determined by various factors including crude oil prices, taxes, supply and demand, and refining costs.

Efficiency

The extent to which resources are used in the best way possible to produce goods and services, minimizing waste and costs.

Shortages

A situation where the demand for a product exceeds its supply at a particular price, often leading to increased prices.

Price Floor

Price floor is a government or regulatory imposed minimum price set above the equilibrium price, preventing the market price from falling below a certain level.