Which act was designed to protect investors by increasing the accuracy and reliability of corporate disclosures?

Which act was designed to protect investors by increasing the accuracy and reliability of corporate disclosures?

• A. Denial of Service
• B. Sarbanes-Oxley Act
• C. Google Hacking
• D. Clustering

Answer: (B)

The main idea here is identifying a law that strengthens how companies report information to protect investors. The Sarbanes-Oxley Act, enacted in 2002 after major corporate scandals, is designed to make financial reporting more accurate and reliable. It requires top executives to certify financial statements, enforces strict internal controls over reporting, and expands oversight and penalties for fraud through independent audit governance. All of these provisions aim to ensure that the disclosures investors rely on are trustworthy and verifiable. Other terms listed don’t fit this purpose. Denial of Service is about disrupting services, Google Hacking refers to exploiting exposed information found via search, and clustering is a data-analysis method. None of these address improving the integrity of corporate disclosures for investors.

The main idea here is identifying a law that strengthens how companies report information to protect investors. The Sarbanes-Oxley Act, enacted in 2002 after major corporate scandals, is designed to make financial reporting more accurate and reliable. It requires top executives to certify financial statements, enforces strict internal controls over reporting, and expands oversight and penalties for fraud through independent audit governance. All of these provisions aim to ensure that the disclosures investors rely on are trustworthy and verifiable.

Other terms listed don’t fit this purpose. Denial of Service is about disrupting services, Google Hacking refers to exploiting exposed information found via search, and clustering is a data-analysis method. None of these address improving the integrity of corporate disclosures for investors.