Which of the following statements is true about the Sarbanes-Oxley Act?

The Sarbanes-Oxley Act, enacted in 2002, was designed to enhance corporate governance and accountability, particularly in response to major financial scandals involving large corporations. One of the key objectives of this legislation is to protect shareholders by implementing reforms that improve the accuracy and reliability of corporate disclosures. This includes establishing stricter rules for financial reporting, requiring greater transparency from companies regarding their financial practices, and enforcing penalties for fraudulent activities. As a result, the statement regarding reforms to protect shareholders from fraud accurately reflects the core purpose of the Sarbanes-Oxley Act.

In contrast, the other options do not align with the primary focus of the Act. It does not specifically govern healthcare providers, nor was it created to regulate insurance premiums; these areas fall under different regulatory frameworks. Additionally, while some provisions may apply to financial institutions, the Act is not limited to banking but encompasses a wide range of public companies, making the assertion that it focuses only on banking institutions inaccurate.