The public company accounting reform and investor protection act of 2002 is known as the

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the public company accounting reform and investor protection act of 2002 is known as the

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the public company accounting reform and investor protection act of 2002 is known as the

Answer: The Sarbanes-Oxley Act, often abbreviated as SOX, was enacted in response to corporate accounting scandals such as Enron and WorldCom. It introduced significant reforms and regulations to enhance corporate governance, financial transparency, and investor protection in public companies. SOX established new standards for financial reporting, internal controls, and the independence of auditors, aiming to prevent fraudulent financial practices and improve the accuracy and reliability of financial statements. This act has had a profound impact on the financial industry and has become a critical component of corporate governance in the United States.