Why Was the Sarbanes-Oxley Act (SOX)enacted

question 179

Multiple Choice

Why was the Sarbanes-Oxley Act (SOX) enacted?

• A)To bring GAAP closer to global financial reporting standards.
• B)The lack of significant corporate frauds during the late 1990s and early 2000s warranted less monitoring for external stakeholders.
• C)To improve the financial reporting and restore investor confidence.
• D)Accounting rules had become so complex that investors could no longer understand them.

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Definitions:

Anti-Compounding Feature

is a safety mechanism in braking systems designed to prevent the simultaneous application of both the service brake and the parking brake, reducing the risk of brake damage or failure.

Trailer Service Brake

The trailer service brake is the main braking system of a trailer, activated by the driver to slow down or stop the trailer while in motion.

Treadle Valve

A dual-circuit service brake actuation valve that meters air from the primary and secondary service reservoirs to the service lines and brake chambers. Also known as a foot valve.

Permissable Leakage

The maximum amount of leakage allowed by regulation or specification, often referring to fluids or gas.