Questions: Question 16 Mark this question Which of the following was created by the government to police financial reporting and to prevent instances of fraud and misconduct? Internal Control Accounting System Accounting Cycle Sarbanes-Oxley Act

The answer is Sarbanes-Oxley Act.

Internal control refers to processes and procedures implemented by a company to ensure the integrity of financial and accounting information, promote accountability, and prevent fraud. While important, it is not a government-created entity.

An accounting system is a set of processes and procedures used to manage and record a company's financial transactions. It is a tool used by businesses rather than a regulatory body created by the government.

The accounting cycle is a series of steps taken to record and process financial transactions, from the initial transaction to the preparation of financial statements. It is a fundamental concept in accounting but not a government-created entity.

The Sarbanes-Oxley Act (SOX) was enacted by the U.S. Congress in 2002 in response to major financial scandals such as Enron and WorldCom. The act established new and enhanced standards for all U.S. public company boards, management, and public accounting firms. It created the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies and enforce compliance with specific regulations to prevent fraud and misconduct in financial reporting.