Certification in Supplier Diversity 2026 – 400 Free Practice Questions to Pass the Exam

The primary focus of the Sarbanes-Oxley Act (SOX), enacted in 2002, is to establish rules for public company financial reporting. The act was created in response to a series of corporate scandals, such as those involving Enron and WorldCom, which highlighted the need for improved accountability and transparency in financial practices. SOX mandates strict reforms to enhance corporate governance and financial disclosures, requiring companies to ensure the accuracy and reliability of their financial statements. This includes establishing internal controls and ensuring that executives take personal responsibility for the accuracy of finances, thus helping to protect investors and restore public confidence in the financial markets.

The other options pertain to broader topics such as environmental standards, international trade, and monetary policy, which are not the domains addressed by SOX. The legislation's specific aim at public company financial reporting differentiates it from these unrelated areas.