The Sarbanes-Oxley Act of 2002 is a governmental response to:
A) decreasing corporate profits.
B) the terrorist attacks on 9/11/2001.
C) a weakening economy.
D) deregulation of the stock exchanges.
E) management greed and abuses.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was enacted as a response to corporate scandals such as Enron, WorldCom, and Tyco which involved management greed and abuses such as accounting fraud, insider trading, and misrepresentation of financial statements. It aimed to increase transparency and accountability in corporate governance and financial reporting.

The Sarbanes-Oxley Act of 2002 Is a Governmental Response To