Which act is a legal framework aimed at protecting investors and improving corporate governance?

Which act is a legal framework aimed at protecting investors and improving corporate governance?

• A. Sarbanes-Oxley Act
• B. Corporate Espionage
• C. Footprinting
• D. Google Hacking

Answer: (A)

This question tests knowledge of regulatory frameworks that protect investors and govern corporate behavior. The Sarbanes-Oxley Act, enacted in 2002 in response to major corporate scandals, establishes requirements for financial reporting and internal controls for publicly traded companies. It aims to ensure the accuracy of financial statements, increase transparency, and hold executives and auditors accountable, with oversight by the PCAOB. Because of these provisions, it directly targets investor protection and corporate governance, making it the best description among the options. The other choices refer to illegal activity or cybersecurity techniques rather than a legal framework for governance: Corporate Espionage is illicit spying, while Footprinting and Google Hacking are reconnaissance methods used in cyberattacks.

This question tests knowledge of regulatory frameworks that protect investors and govern corporate behavior. The Sarbanes-Oxley Act, enacted in 2002 in response to major corporate scandals, establishes requirements for financial reporting and internal controls for publicly traded companies. It aims to ensure the accuracy of financial statements, increase transparency, and hold executives and auditors accountable, with oversight by the PCAOB. Because of these provisions, it directly targets investor protection and corporate governance, making it the best description among the options. The other choices refer to illegal activity or cybersecurity techniques rather than a legal framework for governance: Corporate Espionage is illicit spying, while Footprinting and Google Hacking are reconnaissance methods used in cyberattacks.