Question $5(0\mathrm{.}5$ points$)$

Why was the Sarbanes$-$Oxley Act $($SOX$)$ enacted?

To bring GAAP closer to global financial reporting standards.

The lack of significant corporate frauds during the late $1990$s and early $2000$s

warranted less monitoring for external stakeholders.

To improve financial reporting and restore investor confidence.

Accounting rules had become so complex that investors could no longer

understand them.