The Sarbanes-Oxley Act of 2002 was passed in response to
A) insider trading activities.
B) false disclosures in financial reporting.
C) the decline in technology stocks.
D) all of the above.

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley Act of 2002 was primarily passed in response to false disclosures in financial reporting, specifically in the wake of accounting scandals such as Enron and Worldcom. While insider trading activities and the decline in technology stocks may have contributed to the need for increased regulation, they were not the main drivers for the passage of this act.

The Sarbanes-Oxley Act of 2002 Was Passed in Response to