What act was passed in response to corporate and accounting scandals that aimed to restore public trust in accounting practices?

The Sarbanes-Oxley Act, passed in 2002, was a significant legislative response to a series of high-profile corporate and accounting scandals, including those involving Enron and WorldCom. This act aimed to enhance corporate governance and improve the accuracy and reliability of corporate disclosures, thus restoring public trust in financial reporting and accounting practices.

The key components of the Sarbanes-Oxley Act include the establishment of stricter regulations on financial practices and corporate governance. It introduced measures such as the requirement for CEOs and CFOs to personally certify the accuracy of financial statements, as well as the establishment of the Public Company Accounting Oversight Board (PCAOB) to oversee the audits of public companies. These provisions were designed to increase accountability, mitigate risks of fraudulent activities, and protect investors.

In contrast, the other options listed refer to different legislative acts that address various aspects of corporate regulation and financial practices. The Federal Securities Act primarily focused on the securities regulation in the 1930s, while the Dodd-Frank Act was enacted in response to the 2008 financial crisis, aiming to reform financial regulation. The Trust in Accounting Act is not an actual piece of legislation, making it an invalid choice. Therefore, the Sarbanes-O