The motivation for the passage of the Sarbanes-Oxley act was
A) Failure of Internet technologies
B) Denial of culpability by senior executives for falsification of records
C) To prevent stock market crashes
D) To recover retiree savings

Question

Quizplus · Accepted Answer

The Sarbanes-Oxley act was passed in response to corporate scandals such as Enron and WorldCom, where senior executives were found to have falsified financial records but denied culpability. The act aimed to improve corporate governance and accountability to prevent such scandals from happening again. The other options (A, C, and D) are not accurate reasons for the passage of this act.

The Motivation for the Passage of the Sarbanes-Oxley Act Was