What is the main purpose of the Sarbanes-Oxley Act?

The primary purpose of the Sarbanes-Oxley Act, enacted in 2002 in response to major corporate scandals, is to fight accounting and corporate fraud. This legislation establishes stringent auditing and financial regulations for publicly traded companies, aiming to enhance corporate governance and accountability. It seeks to protect investors from fraudulent accounting practices and to restore public confidence in the integrity of financial reporting. Key provisions include increased oversight of auditors, strict penalties for fraudulent financial activity, and requirements for companies to establish internal controls and reporting mechanisms.

In contrast, while the other options may address important issues, they do not reflect the core focus of the Sarbanes-Oxley Act. Encouraging foreign investments, promoting international trade, and regulating healthcare costs fall outside the scope of this legislation and do not pertain to the regulation and oversight of corporate financial practices.