Answered

LEARNING OBJECTIVE: Recognize the relevance of law to
specific business disciplines.
Which of the following laws or agencies protect the public from
the consequences of risky accounting practices?
a.) Truth in Lending Act
b.) Title VII
O
c.) Federal Trade Commission
O
d.) Sarbanes-Oxley Act



Answer :

GinnyAnswer
The law or agency that protects the public from risky accounting practices is the Sarbanes-Oxley Act. This act was implemented in 2002 and aims to enhance transparency and financial disclosures in corporations to protect investors and the public from accounting errors and fraudulent practices. The Sarbanes-Oxley Act established requirements for accurate financial reporting, internal controls, and independent audits to prevent accounting scandals like those seen in companies such as Enron and WorldCom. By holding company executives accountable for the accuracy of financial statements and requiring greater transparency in financial reporting, the Sarbanes-Oxley Act helps safeguard the public from the negative consequences of risky accounting practices.