Question

The Sarbanes-Oxley Act, 2002, was passed in response to a number of major corporate and accounting scandals. (T/F)

Answer 1

The Sarbanes-Oxley Act, 2002, was passed in response to major corporate and accounting scandals to increase confidence in financial information provided by public corporations and protect investors from accounting fraud.

Step-by-step explanation:

The Sarbanes-Oxley Act, 2002, was passed in response to a number of major corporate and accounting scandals. This statement is true. The Sarbanes-Oxley Act was introduced after scandals involving prominent corporations like Enron, Tyco International, and WorldCom.

The purpose of the act was to increase confidence in financial information provided by public corporations and protect investors from accounting fraud.