The Sarbanes-Oxley Act of 2002 was passed as a result of

Question

a. regulations passed by the International Accounting Standards Board.
b. a civil lawsuit brought by Arthur Andersen following its bankruptcy.
c. public reaction to several corporate accounting scandals.
d. insistence by accountants that the standards be changed.
e. intense lobbying by corporations.

Answer 1

The Sarbanes-Oxley Act of 2002 was passed as a result of:

c. public reaction to several corporate accounting scandals.

This legislation was enacted in response to major corporate and accounting scandals, such as those involving Enron, WorldCom, and Tyco International, aimed at protecting investors by improving the accuracy and reliability of corporate disclosures.