Does the Sarbanes-Oxley Act make all financial statements more accurate and reliable?

Answer: The Sarbanes-Oxley Act applies to companies that present audited financial statements, including publicly traded companies. For most creditors, audited financial statements are the exception rather than the rule since there are many times more privately held companies than publicly traded companies. Therefore, the Sarbanes-Oxley Act has limited impact on most credit departments, and it does not improve or reduce the chances that unaudited statements being accurate or reliable.