Certified in Healthcare Compliance (CHC) Practice Test 2025 – Complete Exam Prep

The Sarbanes-Oxley Act, enacted in 2002, was designed to enhance corporate governance, increase accountability, and improve financial disclosures in publicly traded companies. This legislation emerged in response to high-profile financial scandals, such as those involving Enron and Worldcom, which highlighted significant gaps in corporate oversight and ethics.

The Sarbanes-Oxley Act introduced new standards for corporate responsibility by implementing stricter regulations for financial reporting, requiring management to personally certify the accuracy of financial statements and making it easier to impose penalties for fraudulent activities. It also established the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies, enhancing the independence of external auditors and protecting the interests of shareholders.

While the other pieces of legislation mentioned address different areas, such as national security, international bribery, and healthcare self-referral, they do not specifically focus on corporate governance and financial accountability in the same way the Sarbanes-Oxley Act does. Hence, it is significant as the legislation that specifically established new standards for corporate responsibility.