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mihalych1998 [28]
3 years ago
7

Stanley is an executive of Fit Corp., a chain of fitness clubs. For years, he successfully hid illegal and misleading accounting

practices, but eventually, he was exposed and punished with a jail sentence under the _____ Act.
Social Studies
1 answer:
Lilit [14]3 years ago
3 0

Answer:

Stanley is an executive of Fit Corp., a chain of fitness clubs. For years, he successfully hid illegal and misleading accounting practices, but eventually, he was exposed and punished with a jail sentence under the Sarbanes-Oxley Act (SOX).

Explanation:

Sarbanes-Oxley Act (SOX) was established by George W. Bush during 2002. It was created with the main goal of protecting shareholders, employees and the public from fraudulent accounting practices and errors. Due to the corporate scandals at the start of the 21. century, federal lawmakers decided to enact this law in order to regulate financial reporting and other business practices. The most famous cases that preceeded SOX were the case of Enron Corp - one of the largest companies in the US around 2000, WorldCom - news company and Tyco International - security systems company.

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