The correct answer is The Sarbanes-Oxley Act of 2002.
The Sarbanes-Oxley Act of 2002 (SOX) was a federal law enacted in the United States to regulate corporate governance and financial reporting practices. The act mandated the creation of the Public Company Accounting Oversight Board (PCAOB) to oversee the auditing of public companies, and it directed the Securities and Exchange Commission (SEC) to oversee the PCAOB.
The act also introduced new rules for corporate governance, such as requiring a company's top leaders to take responsibility for the accuracy and completeness of the financial reports.
Additionally, the act established greater criminal penalties for accounting fraud and insider trading. SOX was the first major federal legislation enacted in response to the numerous accounting scandals that had occurred in the early 2000s. The act was an attempt to restore confidence in the financial markets and ensure greater transparency and accountability in corporate governance.
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