Ace the 2025 Certified Materials Maestro Exam – Resources Ready, Set, Go!

The primary goal of the Sarbanes-Oxley Act is to ensure the reliability of financial reporting. Enacted in response to major financial scandals in the early 2000s, such as those involving Enron and WorldCom, the Act was designed to protect investors by improving the accuracy and reliability of corporate disclosures.

One key aspect of the Act is the implementation of stricter regulations on how public companies handle financial reporting and auditing processes. This includes requirements for directors to sign off on financial statements and the establishment of internal controls to prevent inaccuracies and fraud. Additionally, it led to the creation of the Public Company Accounting Oversight Board (PCAOB), which oversees the audits of public companies to further enhance the quality of financial reporting.

While the other options touch on aspects related to business practices, they do not fundamentally capture the primary objective of the legislation, which is centered on bolstering trust in the integrity of financial statements provided to stakeholders.