What was the major purpose of the Sarbanes-Oxley Act?

The major purpose of the Sarbanes-Oxley Act (SOX) was indeed to protect the interests of investors. Enacted in response to major corporate scandals, such as those involving Enron and WorldCom, the legislation aimed to restore public confidence in the financial markets by implementing measures that enhance the accuracy and reliability of corporate disclosures.

By ensuring that companies adhere to stricter reporting requirements and internal controls, the Act was designed to safeguard shareholders and the general public from accounting errors or fraudulent practices. These investor protections also involved establishing stronger penalties for corporate wrongdoing, which further underscored the commitment to transparency and accountability in financial reporting. As a result, the primary focus of the Sarbanes-Oxley Act is deeply rooted in the protection of investors and maintaining the integrity of the financial market.

While the other options touch on significant aspects of the SOX, such as the establishment of rigorous audit standards and the responsibilities of oversight bodies, these are more means to the end goal of ensuring investor protection and confidence in the integrity of financial statements.