What is one of the primary focuses of the Sarbanes-Oxley Act?

The primary focus of the Sarbanes-Oxley Act, which was enacted in response to several high-profile corporate scandals, is to protect investors from accounting fraud by improving the accuracy and reliability of corporate disclosures. This legislation establishes stricter regulations for financial reporting and internal controls for publicly traded companies, aiming to restore public confidence in financial markets. By implementing measures that require companies to maintain accurate financial records and providing legal penalties for fraudulent reporting, the act ensures that investors have access to truthful and comprehensive financial information. It is crucial for creating accountability among corporate executives and safeguarding the interests of shareholders, thereby fostering a more transparent and trustworthy business environment.