Accounting Sophia Unit 1 Challenges 1-3

1 — Origins and Ethics Which of the following statements is true regarding the purpose of the Sarbanes Oxley-Act? The Sarbanes-Oxley Act regulates financial reporting to prevent fraud or misconduct. Which of the following was created by the government in response to unethical behavior by companies such as Enron and WorldCom? The Sarbanes-Oxley Act Which of the following statements is true regarding the regulation of ethics in accounting? Unethical behavior by major companies prompted the government to create the Sarbanes-Oxley Act. 2 — Governance The governing body __________ is responsible for developing the US governing principles known as __________. FASB; GAAP 3 — Accounting in Practice Frank and Laura dedicated $250,000 to one of their clients, hoping to receive returns in addition to that $250,000. Frank and Laura's role is that of a(n) __________. investor Janice works part-time and her sole responsibility is to document all of the accounting events that take place. Janice's role is that of a(n) __________.