Question

Instances of fraud and misconduct caused the government to implement which piece of

legislation?
O
General Accepted Accounting Principles
International Financial Reporting Standards
O
Sarbanes-Oxley Act
O
Miller-Townsend Act

Answer 1

The answer is Sarbanes-Oxley Act.

Step-by-step explanation:

The Sarbanes-Oxley Act is a legislation that was signed into law by President Bush on the 30th of July, 2002. The purpose of the Act is to supervise the financial reporting environment for finance professionals.

The Sarbanes-Oxley Act was passed when it was discovered that there were accounting scandals at Enron, WorldCom, Global Crossing, Tyco and Arthur Andersen. These scandals caused the losses of billions of dollars of corporate and investors' money and this resulted in the lack of trust by investors in the financial markets.