General Education Development (GED) Practice Exam

The Sarbanes-Oxley Act of 2002 was a direct response to major corporate and accounting scandals, such as those involving Enron and WorldCom, which shook public trust in financial markets. Its primary intention was to enhance corporate governance and accountability by implementing stricter rules on financial reporting and greater oversight of accounting practices. This includes requirements for increased transparency, as well as the establishment of the Public Company Accounting Oversight Board (PCAOB) to oversee audits of public companies.

The focus on fighting corporate and accounting fraud is evident in provisions that hold executives accountable for the accuracy of financial statements, thereby encouraging ethical management practices and protecting investors. This act marked a significant shift in how publicly traded companies must operate, promoting integrity and financial health in the corporate sector. The other options mentioned do not align with the primary objectives of the Sarbanes-Oxley Act, which centers around corporate accountability and fraud prevention.