Certified Ethical Hacker (CEH v11) — Question 226

Widespread fraud at Enron, WorldCom, and Tyco led to the creation of a law that was designed to improve the accuracy and accountability of corporate disclosures. It covers accounting firms and third parties that provide financial services to some organizations and came into effect in 2002. This law is known by what acronym?

Answer options

• A. SOX
• B. FedRAMP
• C. HIPAA
• D. PCI DSS

Correct answer: A

Explanation

The correct answer is A, SOX, which stands for the Sarbanes-Oxley Act, enacted to improve corporate financial practices after major accounting scandals. Options B, C, and D refer to other regulations that do not specifically address corporate disclosures: FedRAMP is related to cloud security, HIPAA pertains to health information, and PCI DSS focuses on payment card security.