Question

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. Dodd-Frank Wall Street Reform and Consumer Protection Act
c. Federal Sentencing Guidelines for Organizations
d. Foreign Corrupt Practices Act
e. Sarbanes-Oxley Act

Answer 1

Answer:

e. Sarbanes-Oxley Act

Explanation:

Sarbanes Oxley Act was incorporated and enforced in the year 2002.

This was done to provide protection to the investors in the stakes they invest from any fraudulent actions as performed by the companies.

The SOX Act provided certain guidelines and procedures to be followed while presenting and preparing the accounting records.

This clearly initiates a practice of fair disclosure by the corporations in their financial statements, which will not lead to any fraudulent activities and any discrepancies in the investors towards the corporations.