Certified Ethical Hacker (CEH v13) — Question 94

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, enacted to protect investors by improving the accuracy of corporate disclosures. The other options, FedRAMP, HIPAA, and PCI DSS, pertain to different regulatory and compliance frameworks that do not directly address corporate disclosure accountability.