Asked by Brandon Morrone on Jul 22, 2024
Verified
The _____ was/were enacted to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s.
A) Defense Industry Initiative on Business Ethics and Conduct
B) Sarbanes-Oxley Act
C) Federal Sentencing Guidelines for Organizations
D) Foreign Corrupt Practices Act
E) Dodd-Frank Wall Street Reform and Consumer Protection Act
Sarbanes-Oxley Act
A United States federal law enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations.
Accounting Scandals
Incidents that involve deliberate manipulation of financial statements and records for the purpose of misleading investors and stakeholders.
- Ascertain the fundamental legislative regulations that affect ethical business conduct and corporate governance.
Verified Answer
VE
vanessa elizondoJul 26, 2024
Final Answer :
B
Explanation :
The Sarbanes-Oxley Act was enacted in 2002 to restore confidence in financial reporting and business ethics after the accounting scandals of the early 2000s, such as Enron and WorldCom. The act established new or expanded requirements for public companies and accounting firms, including increased disclosures, independent auditor oversight, and penalties for fraudulent activity. The other options listed relate to different initiatives or legislation focused on ethical business conduct in other areas, such as defense, sentencing guidelines, foreign corruption, and Wall Street reform.
Learning Objectives
- Ascertain the fundamental legislative regulations that affect ethical business conduct and corporate governance.
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