The Sarbanes-Oxley Act of 2002 has dramatically changed the daily work of financial accountants and auditors of affected entities. Select TRUE or FALSE:

Evaluation of the Statement

1. Understanding the Sarbanes-Oxley Act (SOX):

   • The Sarbanes-Oxley Act was enacted in response to financial scandals that shook the corporate world, such as those involving Enron and WorldCom. Its primary goal is to enhance corporate transparency and accountability.

2. Impact on Financial Accountants and Auditors:

   • SOX established stringent requirements for financial reporting and internal controls. This significantly impacts how financial accountants prepare financial statements and how auditors conduct their audits.

3. Daily Work Changes:

   • The act has resulted in increased documentation, more robust internal controls, and greater emphasis on accuracy and compliance, which has fundamentally altered the daily responsibilities of financial professionals.

Conclusion

Given the significant changes brought about by the Sarbanes-Oxley Act in the daily practices of financial accountants and auditors, the statement is:

TRUE.

Thus, the Sarbanes-Oxley Act of 2002 has indeed dramatically changed the daily work of financial accountants and auditors of affected entities.