Which act requires publicly traded companies to ensure the accuracy of their financial reporting?

The Sarbanes-Oxley Act, commonly referred to as SOX, establishes strict guidelines for financial reporting among publicly traded companies. Enacted in 2002 in response to corporate scandals, SOX aims to protect investors by improving the accuracy and reliability of corporate disclosures. This act mandates that companies must implement internal controls and procedures for financial reporting to prevent fraud and ensure the integrity of financial statements.

SOX also imposes severe penalties for inaccurate financial reporting, including fines and potential imprisonment for executives who certify misleading reports. This focus on accountability in financial practices has made SOX a cornerstone of corporate governance in the U.S.

In contrast, the other acts mentioned serve different purposes: FISMA (Federal Information Security Management Act) focuses on information security for federal agencies, FERPA (Family Educational Rights and Privacy Act) protects the privacy of students' educational records, and COPPA (Children's Online Privacy Protection Act) is aimed at protecting the privacy of children under 13 online. These acts do not address the accuracy of financial reporting, which is why they are not the correct choice in this context.