The Sarbanes-Oxley Act of 2002 is a federal law enacted in reaction to which of the following events?
A)The Madoff's Ponzi scheme.
B)The Enron debacle.
C)The WorldCom collapse.
D)All of the above.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 is a federal law enacted to respond to major corporate and accounting scandals, including the Madoff's Ponzi scheme, the Enron debacle, and the WorldCom collapse. The act oversees, regulates, inspects, and disciplines accounting firms; and covers issues such as auditor independence, corporate governance, and enhanced financial disclosure.
Key Takeaway: The enactment of the Sarbanes-Oxley Act shows the effort of the government to prevent financial losses and maintain public confidence in the national securities market.

The Sarbanes-Oxley Act of 2002 Is a Federal Law Enacted