Which of these is not generally regarded as a reason for the spate of dubious accounting practices by public companies which led to the enactment of the Sarbanes-Oxley Act in the USA and similar legislation in other jurisdictions?
A)Pressure on managers to meet investors' unrealistic expectations for continually rising profits.
B)Greed by executives.
C)Lack of accounting standards.
D)Too rapid growth financed by borrowing, which leads to a liquidity crisis.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was enacted in response to accounting scandals that were not due to a lack of accounting standards, but rather due to the manipulation or circumvention of existing standards. The other options (A, B, and D) are considered reasons that contributed to the dubious accounting practices.

Which of These Is Not Generally Regarded as a Reason