Sarbanes-Oxley Act: Criminal Aspects and Accountability in Corporate Environment

The video discusses the Sarbanes-Oxley Act, enacted in 2002 to address corporate scandals by setting laws for ethical and criminal activities of corporate managers and directors. It includes the Corporate and Criminal Fraud Accountability Act, which imposes penalties for misuse of corporate records, and the White Collar Crime Penalty Enhancement Act, which targets unethical executive conduct. The act mandates CEOs and CFOs to certify the accuracy of financial records submitted to the SEC, enhancing corporate accountability and allowing for criminal enforcement of unethical activities.

What was the primary reason for the introduction of the Sarbanes-Oxley Act?

• To enhance corporate profits

• To address ethical and criminal activities in corporations

• To reduce taxes for corporations

• To promote international trade

Which act imposes penalties for the misuse of corporate records?

• White Collar Crime Penalty Enhancement Act

• Corporate and Criminal Fraud Accountability Act

• Securities Exchange Act

• Corporate Governance Act

What is the focus of the White Collar Crime Penalty Enhancement Act?

• Promoting international trade

• Reducing corporate taxes

• Enhancing corporate profits

• Penalizing executives for unethical conduct

Who is required to certify the accuracy of records provided to the SEC?

• The Legal Department

• The Shareholders

• The CEO and CFO

• The Board of Directors

What is one of the outcomes of the Sarbanes-Oxley Act?

• Reduced international trade barriers

• Lowered corporate taxes

• Increased corporate profits

• Enhanced accountability within corporations