Question

Wehler Industries recently restructured their board of directors to include more members who are not employees of the company as well as add a financial expert. What may have prompted this change? A: the IMA Statement of Ethical Professional Practice B: implementing an enterprise resource planning system C: the Sarbanes-Oxley Act D: pursuing the triple bottom line

Answer 1

Answer:

The correct answer is letter "C": the Sarbanes-Oxley Act.

Explanation:

The Sarbanes-Oxley Act (SOX) of 2002 is a legislative response to a number of corporate scandals that sent shockwaves through the world financial markets. The SOX attempts to strengthen corporate oversight and improve internal corporate control. The main purpose of SOX is to protect shareholders from fraudulent representations in corporate financial statements. SOX was created to add criminal penalties for violating securities laws. It is a result of financial scandals made public during the early 2000s.