What does the Sarbanes-Oxley Act require public companies to disclose regarding their senior financial officers?

The correct answer highlights the Sarbanes-Oxley Act's emphasis on corporate governance and ethical standards in financial reporting. Specifically, the Act requires public companies to disclose whether they have a code of ethics for their senior financial officers. This is intended to promote ethical behavior and accountability at high levels within organizations and to protect investors from fraudulent financial reporting. The necessity of explaining any exclusions from this code is also critical, as it ensures transparency and informs stakeholders about any potential lapses in ethical guidelines.

The emphasis on a code of ethics aligns with the broader goals of the Sarbanes-Oxley Act, which was enacted in response to significant corporate and accounting scandals in the early 2000s. This disclosure requirement reinforces the importance of ethical practices in financial management and seeks to instill confidence among investors regarding the integrity of financial statements.

Other options, while related to financial oversight, do not address the specific requirements outlined by the Sarbanes-Oxley Act. For instance, details of salaries and bonuses do not inherently pertain to ethical behavior or corporate governance in the same way that a code of ethics does. Similarly, the total number of employees in a finance department or the percentages of profits allocated to executive benefits are relevant to financial management but do not