The Sarbanes-Oxley Act of 2002 was enacted as a result of:
A)high ethical standards passed down by leaders of the Big 4 accounting firms.
B)corporate accounting scandals that left investors with little confidence in corporate financial reporting.
C)auditors being bribed to provide a clean audit report for corporations.
D)Congress needing to pass a bill in an election year.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted as a response to corporate accounting scandals, such as Enron and WorldCom, which left investors with little confidence in corporate financial reporting. The act was passed to restore public trust in the financial reporting of publicly traded companies.

The Sarbanes-Oxley Act of 2002 Was Enacted as a Result