Which act protects the general public and shareholders from accounting errors and illegal practices in the enterprise?

The Sarbanes-Oxley Act (SOX) is designed to protect the general public and shareholders by establishing stricter regulations and requirements for financial reporting and corporate governance. Enacted in response to major corporate scandals, SOX aims to enhance the accuracy and reliability of corporate disclosures and to prevent fraudulent financial activity. It imposes various accountability requirements on corporate executives and board members, ensuring that they are held responsible for the accuracy of financial statements.

The act requires companies to implement internal controls and to undergo regular audits, thus increasing transparency and trust in financial reporting. By enforcing these standards, SOX protects investors and encourages ethical practices in accounting, ultimately contributing to a more stable financial environment.

Other acts, such as HIPAA and GLBA, focus on protecting personal health information and financial privacy, respectively, while the Stored Communications Act (SCA) is concerned with privacy in electronic communications and does not specifically address accounting practices or corporate governance. Therefore, SOX is the appropriate choice as it directly addresses the protection of the public and shareholders from accounting errors and illegal practices in enterprises.