Final answer:
The accounting frauds of the early 2000s led to the implementation of the Sarbanes-Oxley Act, which increased scrutiny on financial reporting and aimed to protect investors by improving the reliability of corporate financial information.
Step-by-step explanation:
The accounting frauds of the early 2000s, such as those involving Enron, Tyco International, and WorldCom, resulted in significant changes in regulatory oversight and corporate governance. One major outcome was the implementation of the Sarbanes-Oxley Act in 2002, which aimed to increase confidence in financial reporting and protect investors by enhancing the accuracy and reliability of corporate disclosures.
This legislation imposed stricter rules on the way public corporations report their financials, enforced higher standards of accountability, and established new penalties for unlawful corporate behavior. The emphasis on increased scrutiny on financial reporting has changed the way corporations do business and has set a precedent for preventing financial misconduct in the future.