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Because of several accounting scandals that led to the financial disintegration of large companies and the accounting firms that perpetrated the scandals, Congress enacted the _____.

A) Sarbanes-Oxley Act
B) Dodd-Frank Act
C) Glass-Steagall Act
D) Gramm-Leach-Bliley Act

1 Answer

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Final answer:

The legislation enacted by Congress in 2002 after several major accounting scandals is the Sarbanes-Oxley Act, which was designed to protect investors from accounting fraud and improve confidence in financial information provided by public corporations.

Step-by-step explanation:

The accounting scandals that led to the financial disintegration of large companies like Enron, Tyco International, and WorldCom resulted in the enactment of the Sarbanes-Oxley Act in 2002. This legislation was implemented to restore trust in the financial information disclosed by public corporations and safeguard investors against accounting fraud. The Sarbanes-Oxley Act was a direct response to the major corporate financial malpractices of that time.

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