Question

The landmark legislation that helps guard against inflated profits and hidden liabilities on balance sheets to protect against financial scandals is the:
A. Foreign Investment and National Security Act of 2007.
B. Fraud Enforcement and Recovery Act of 2009.
C. Private Securities Litigation Reform Act of 1995.
D. Sarbanes-Oxley Act of 2002.

Answer 1

Answer:

D. Sarbanes-Oxley Act of 2002.

Explanation:

The Sarbanes-Oxley Act of 2002 was a law that was passed that aimed to protect investors from fraudulent financial reporting by corporations. It determined reforms to existing securities regulations and imposed penalties. This law was passed as a response to a series of scandals on the financial world in early 2000.