Sarbanes-Oxley Act: Significance

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Sarbanes-Oxley Act: Significance [Author’s Name] [Institute’s Name] Introduction The Sarbanes – Oxley Act of 2002, signed by President Bush on 30th July 2002 bestow much tougher regulatory and enforcement powers. The Sarbanes-Oxley Act came into force mainly due to financial scandals committed by corporate giants. After its enforcement accounting system and financial statements exposed by the companies made remarkable progress. This has become possible mainly due to the rigorous requirements stated in the Sarbanes- Oxley Act. This helped the investors to restore their confidence in the companies and U.S legislature as well. (Powers, E. 2009). The Sarbanes –Oxley Act raises the standards of corporate transparency and accountability.…show more content…
(Navran, F. and L. Pittman, E. 2003) References Zhang, I.X., February 2005, “Economic Consequences of the Sarbanes-Oxley Act of 2002”, Available at http://w4.stern.nyu.edu/accounting/docs/speaker_papers/spring2005/Zhang_Ivy_Economic_Consequences_of_S_O.pdf [Accessed on 21st February 2009] Powers, E., 2009, “The History of Sarbanes-Oxley”, Available at http://ezinearticles.com/?The-History-of-Sarbanes-Oxley&id=143573 [Accessed on 21st February, 2009] Friedman, J. 2002, “The Emerging Company and the SEC: The Significance of the Sarbanes-Oxley Act”, Available at http://www.businessforum.com/SEC01.html, [Accessed on 21st February, 2009] Navran, F. and L. Pittman, E., 2003, “Corporate Ethics and Sarbanes-Oxley”, Available at http://www.ethics.org/erc-publications/staff-articles.asp?aid=759 [Accessed on 21st February,

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