Skip to content

CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Conceptual Framework of Corporate Governance

After the Enron and WorldCom failures in the early 2000s, the United States enacted a statute to strengthen auditor independence, CEO/CFO certification of financial statements and internal control reporting. Which statute is this?

It is the Sarbanes-Oxley Act, 2002. The US enacted it after the Enron and WorldCom collapses to restore investor confidence by requiring CEO and CFO certification, independent auditors and internal control reporting. Dodd-Frank followed later, after the 2008 financial crisis.

  1. ACadbury Act
  2. BSarbanes-Oxley Act, 2002Correct
  3. CDodd-Frank Act, 2010
  4. DClause 49 of the Listing Agreement

Explanation

The Sarbanes-Oxley Act, 2002 was the US response to those scandals and introduced CEO/CFO certification, auditor independence rules and internal control reporting. Dodd-Frank came later after the 2008 financial crisis, and Cadbury was a UK committee report, not a US Act.

Did you get it right without looking?

One question tells you little. A timed set on Conceptual Framework of Corporate Governance shows your real accuracy, how long you take and where you lose marks.

Practise Conceptual Framework of Corporate GovernanceFree diagnostic mock

More Conceptual Framework of Corporate Governance questions