The purpose of the Sarbanes-Oxley Act was to
A) require firms to be more rigorous in their accounting and reporting practices.
B) define generally accepted accounting principles.
C) eliminate accounting firms from having to hire accountants that are certified.
D) force accounting firms to combine their consulting and auditing businesses.
E) establish standards and testing procedures for becoming a CPA.

Question

Quizplus · Accepted Answer

After the accounting scandals of Enron and Worldcom in the early 2000s, Congress passed the Sarbanes-Oxley Act, which required firms to be more rigorous in their accounting and reporting practices. Sarbanes-Oxley made accounting firms separate their consulting and auditing businesses and punished corporate executives with potential jail sentences for inaccurate, misleading, or illegal accounting statements.

The Purpose of the Sarbanes-Oxley Act Was to