What resulted from the corporate scandals in the late 1990s and early part of the 21st century?
A) a surge in the reputation of the accounting profession, because in many organizations it seemed only the accountants refused to go along with the fraudulent schemes
B) a call for improved ethical training and standards in the accounting profession
C) decisions by governments to replace external auditors with government auditors
D) a resurgence of investor confidence

Question

Quizplus · Accepted Answer

The corporate scandals in the late 1990s and early part of the 21st century resulted in a call for improved ethical training and standards in the accounting profession, as these scandals were often linked to accounting fraud and manipulation. This led to the creation of new regulations, such as the Sarbanes-Oxley Act, which required greater transparency and accountability in financial reporting. While some individuals within the accounting profession were praised for their refusal to go along with fraudulent schemes, this did not necessarily result in a surge in the reputation of the profession overall. There was also no widespread decision by governments to replace external auditors with government auditors, and while investor confidence eventually recovered, it took time and was not an immediate result of the scandals.

What Resulted from the Corporate Scandals in the Late 1990s