What is required of publicly traded companies by the Sarbanes-Oxley Act of 2002?

The Sarbanes-Oxley Act of 2002 was enacted to enhance corporate governance and strengthen the accuracy and reliability of corporate disclosures following a series of financial scandals. One of its key requirements is the establishment of ethical corporate policies, which demand that companies uphold standards for accuracy and integrity in financial reporting. This emphasizes the importance of corporate responsibility in the financial reporting process.

Additionally, the Act mandates the rotation of independent auditors at least every five years to reduce the risk of auditor familiarity, which can lead to conflicts of interest and lack of objectivity in auditing financial statements.

Another significant requirement of the Sarbanes-Oxley Act is the establishment of a system of internal accounting controls. This is vital for ensuring that financial data is accurate and reliable, thereby protecting shareholders and the public from accounting errors and fraud.

Given these essential aspects of the Sarbanes-Oxley Act, all the requirements listed—ethical corporate policies, auditor rotation, and internal accounting controls—are indeed integral to compliance for publicly traded companies. Hence, the answer that encapsulates all these requirements is the most accurate reflection of what the act demands.