As a result of corporate scandals, which legislation did Congress pass?

The legislation passed by Congress as a result of corporate scandals is the Sarbanes-Oxley Act, commonly referred to as SOX. This law was enacted in 2002 in response to major financial scandals involving corporations such as Enron and WorldCom. The primary purpose of SOX is to enhance corporate governance and accountability by increasing transparency in financial reporting and reducing the likelihood of fraudulent activities.

SOX introduced stringent requirements for financial reporting, internal controls, and auditing practices. It established the Public Company Accounting Oversight Board (PCAOB) to oversee the audit of public companies, aimed at ensuring the accuracy and fairness of corporate disclosures. This legislation reflects a significant step towards restoring public confidence in the integrity of the financial markets and the companies operating within them.

The other options, while important in their respective areas, are not directly related to corporate scandals in the same manner as SOX. The GLBA (Gramm-Leach-Bliley Act) relates to the protection of consumer financial information, HIPAA (Health Insurance Portability and Accountability Act) pertains to healthcare data privacy, and FERPA (Family Educational Rights and Privacy Act) deals with educational records. Each of these laws addresses different sectors and issues, but it is the Sarbanes-O