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Asked by Viviana Paola on Jun 25, 2024

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Which of the following is a requirement stated by the Sarbanes-Oxley Act?

A) This act requires that the Federal Reserve Board take up the task of certifying public accountants.
B) This act requires firms to separate their consulting and auditing businesses.
C) This act limits the types of assets commercial banks can buy.
D) This act limits the use of derivative instruments.
E) This act requires that firms employ their own private accountants.

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a United States federal law enacted in 2002 to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.

Public Accountants

Professionals who provide accounting services to the public, including audit, tax preparation, and consulting, typically holding a CPA license.

  • Determine essential legislation that impacts practices in accounting, for example, the Sarbanes-Oxley Act.
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JS
Jaden SmithJun 26, 2024
Final Answer :
B
Explanation :
The Sarbanes-Oxley Act, enacted in response to financial scandals, requires firms to maintain independence between their auditing and consulting services to prevent conflicts of interest and ensure the integrity of financial reporting.

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