The Sarbanes-Oxley Act was passed in an effort to
A)protect small business from large corporations dominating the market.
B)ensure that partnerships divide profits among partners in a fair manner.
C)guarantee that outside auditors can control corporate accounting practices.
D)control corrupt corporate behavior.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act was passed in response to corporate accounting scandals, such as Enron and WorldCom, in an effort to control corrupt corporate behavior and increase financial transparency and accountability. It established new and stricter regulations for accounting practices, corporate governance, and disclosure requirements. The act also created penalties for noncompliance and increased the power of regulatory institutions.

The Sarbanes-Oxley Act Was Passed in an Effort to