Certified Ethical Hacker (CEH v12) — Question 54

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 SOX, which stands for the Sarbanes-Oxley Act, a law enacted to protect investors by improving the accuracy of corporate disclosures. FedRAMP relates to cloud services security, HIPAA pertains to healthcare privacy, and PCI DSS is focused on payment card security, making them irrelevant in the context of corporate financial disclosures.