What argument can be made that Sarbanes-Oxley may not be effective in reducing fraud?
A) It is not as stringent as international standards
B) The SEC has had many laws for many years that have not seemed to make much of a difference
C) The penalties under Sarbanes-Oxley are especially stringent, so it may not be enforced
D) Civil and criminal penalties are not effective in preventing financial fraud

Question

Quizplus · Accepted Answer

The SEC has had laws in place for many years to prevent fraud, but financial fraud still occurs. This suggests that simply enacting new legislation, such as Sarbanes-Oxley, may not be effective in reducing fraud.

What Argument Can Be Made That Sarbanes-Oxley May Not Be