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:

Inflation Theory

is the set of various theories explaining the cause and effects of increasing prices or inflation in an economy.

Price Level

Reflects the average of current prices across the entire spectrum of goods and services produced in the economy, serving as a measure of inflation.

Value of Money

The purchasing power of money, which can vary over time due to inflation or changes in the economy.

Hold Money

The act of retaining cash or money in accounts as savings or reserves, rather than investing or spending it.