Certified Incident Handler (CIH) Practice Ecam

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What act was enacted in 2002 to enhance corporate disclosures and protect investors?

DMCA
Sarbanes-Oxley Act
HIPAA
FISMA

The correct answer is: Sarbanes-Oxley Act

The Sarbanes-Oxley Act, enacted in 2002, was a significant piece of legislation aimed at improving corporate governance and accountability in the wake of major financial scandals, such as those involving Enron and WorldCom. This act introduced stringent reforms to enhance financial disclosures from publicly-held companies and established a new regulatory framework for accounting practices. Key components of the Sarbanes-Oxley Act include the requirement for CEOs and CFOs to personally certify the accuracy of financial statements, the establishment of the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies, and increased penalties for fraudulent financial activity. By fostering transparency and accountability, the act aims to protect investors and restore trust in the financial markets, making it an essential tool for corporate integrity. The other acts mentioned serve different purposes: the DMCA pertains to copyright issues, HIPAA focuses on healthcare privacy and security, and FISMA deals with federal information security. Therefore, the Sarbanes-Oxley Act is the appropriate choice regarding corporate disclosures and investor protection.