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Which of the following best places the events of the last decade in proper sequence?

a. Sarbanes-Oxley Act, increased consulting services to auditees, Enron and other scandals, prohibition of most consulting work for auditees, establishment of PCAOB.
b. Increased consulting services to auditees, Sarbanes-Oxley Act, Enron and other scandals, prohibition of most consulting work for auditees, establishment of PCAOB.
c. Enron and other scandals, Sarbanes-Oxley Act, increased consulting services to auditees, prohibition of most consulting work for auditees, establishment of PCAOB.
d. Increased consulting services to auditees, Enron and other scandals, SarbanesOxley Act, prohibition of most consulting work for auditees, establishment of PCAOB.

1 Answer

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Final answer:

The proper sequence of events related to significant corporate scandals and regulatory reforms in the last decade is increased consulting services to auditees, Enron/etc. scandals, Sarbanes-Oxley Act, prohibition of consulting for auditees, and the PCAOB establishment (option d).

Step-by-step explanation:

The correct sequence of events placing the events of the last decade, particularly regarding accounting scandals and legislative responses, is as follows: there was an increase in consulting services to auditees, followed by the Enron and other scandals, which then led to the creation of the Sarbanes-Oxley Act. After the Act was established, there was a prohibition of most consulting work for auditees, and finally, the establishment of the Public Company Accounting Oversight Board (PCAOB).

Therefore, the answer to the question of which sequence best places the events of the last decade in proper sequence is option d. Increased consulting services to auditees, Enron and other scandals, Sarbanes-Oxley Act, prohibition of most consulting work for auditees, and establishment of PCAOB.

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