All of the following are reasons why SOX was enacted, except:
A)Enron's CEO, Jeffrey Skilling, claimed he did not know about the company's financial shenanigans because he was not involved in their accounting
B)Public perception was that auditors were having conflicts of interest with respect to the auditing and consulting services they provided
C)The FASB has long been thought to be ineffective
D)Congress wanted to restore investor confidence in the wake of a rash of corporate scandals

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act (SOX) was enacted primarily in response to major corporate and accounting scandals, including Enron and WorldCom, to restore investor confidence by improving financial disclosures and preventing accounting fraud. The criticism of the Financial Accounting Standards Board (FASB) being ineffective was not a direct reason for the enactment of SOX.

All of the Following Are Reasons Why SOX Was Enacted