The _____ is a piece of u.s. legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations.

The _____ is a piece of u.s. legislation that raises executive and board responsibility and ties criminal penalties to certain accounting and financial violations.

The Correct answer is Sarbanes-Oxley Act (SOX)

The Sarbanes-Oxley Act (SOX) is a U.S. federal law enacted in 2002 in response to corporate accounting scandals, such as Enron and WorldCom. Named after its sponsors, Senator Paul Sarbanes and Representative Michael Oxley, the legislation aims to enhance corporate governance and restore public confidence in the financial markets.

1. Corporate Governance: SOX establishes new standards for corporate boards and accounting firms to ensure the independence and expertise of auditors. It mandates that CEOs and CFOs certify the accuracy of financial statements and imposes penalties for false certifications.

2. Financial Disclosures: The act requires companies to provide more detailed and accurate financial disclosures. It also mandates timely reporting of material changes in a company's financial condition.

3. Internal Controls: SOX requires companies to establish and maintain internal controls over financial reporting to ensure the accuracy and reliability of financial statements. This includes regular assessments and audits of internal control effectiveness.

4. Whistleblower Protection: The legislation provides protection for employees who report corporate misconduct, encouraging whistleblowers to come forward without fear of retaliation.

5. Penalties and Enforcement: SOX imposes significant penalties, including fines and imprisonment, for individuals engaging in fraudulent activities. It also enhances the enforcement powers of regulatory bodies, such as the Securities and Exchange Commission (SEC).