SOX was enacted because of which of the following?

The Sarbanes-Oxley Act (SOX), enacted in 2002, emerged as a response to significant corporate scandals and financial failures, notably those involving Enron, WorldCom, and others. The purpose of SOX is to enhance the accuracy and reliability of corporate disclosures and financial reporting.

Choosing "All of these" recognizes that SOX was fundamentally a response to a multitude of interconnected issues within corporate governance. Poor financial controls were prevalent in many companies, allowing for mismanagement and misleading accounting practices. Additionally, the lack of independent audits contributed to a culture that enabled fraud as internal controls were inadequate and external verification did not exist to ensure accountability. Furthermore, poor oversight by boards of directors (BOD), which failed to maintain proper governance practices, allowed unethical and potentially unlawful behavior to flourish unchecked within organizations.

By addressing all these aspects—financial controls, independent audits, and board oversight—SOX aims to restore investor confidence and enhance the credibility of financial statements, making "All of these" the correct choice. It emphasizes the holistic approach the legislation takes toward improving corporate accountability in the wake of widespread corporate failures.