Question

The _____ is a piece of U.S. legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations.

Answer 1

Answer: Sarbanes-Oxley Act

Explanation:

In the wake of the accounting scandals that rocked the world in the early 2000s from companies like WorldCom and Enron, the U.S. Government passed a law that was aimed at ensuring that such an event would not repeat itself.

The Act was the Sarbanes-Oxley Act which was passed in 2002 and amongst other methods, it aimed to protect investors in a company from accounting misstatements by raising executive and board responsibility and also tying criminal penalties to certain accounting and financial violations.