According to Colin Boyd in "The Structural Origins of Conflicts of Interest in the Accounting Profession" the primary result of the Enron scandal was:
A)The passage of the Sarbanes-Oxley Act.
B)The requirement of an independent secondary audit to ensure accuracy.
C)The breaking up of the "Big Five" auditing firms to ensure greater reliability through increased competition.
D)All of the above

Question

Quizplus · Accepted Answer

The primary result of the Enron scandal was the passage of the Sarbanes-Oxley Act, which introduced stricter regulations and oversight for public companies and accounting firms. While there were other consequences of the scandal, such as increased scrutiny on accounting practices and the dissolution of Arthur Andersen as one of the "Big Five" auditing firms, the Sarbanes-Oxley Act was the most significant outcome. The requirement of an independent secondary audit and the breaking up of auditing firms are not accurate outcomes of the Enron scandal.