What is the primary purpose of the Sarbanes-Oxley Act (SOX)?

The primary purpose of the Sarbanes-Oxley Act (SOX) is to protect investors from fraudulent accounting activities. Enacted in response to major corporate and accounting scandals in the early 2000s, SOX aims to enhance transparency in financial reporting and hold senior executives accountable for the accuracy of financial statements. By establishing rigorous standards for financial practices and corporate governance, the Act helps to ensure that investors can rely on the integrity of the information provided by public companies.

In contrast, the other options relate to specific areas outside of SOX's focus. The enforcement of HIPAA compliance pertains to healthcare privacy and security regulations, while regulating healthcare funding and overseeing medical billing practices are also governed by different laws and regulations that do not fall under the Sarbanes-Oxley framework. Therefore, the emphasis of SOX on safeguarding investors through stricter financial controls distinctly sets it apart from these other topics.