Essay On Sarbanes Oxley Act

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Sarbanes-Oxley Act Sarbanes-Oxley is a United States federal law, which is also known as the public company accounting reform and investors protection act and corporate and auditing accountability and responsibility act. Sarbox or Sox are shorter names given to the company. Paul Sarbanes (US Senator) and Michael G. Oxley (US Representative) are the ones who support this act. This act is intended to protect investors by improving the precision and consistency of corporate disclosures made pursuant to the security law. It is also there to strengthen audit committees and to create responsibilities for publicity traded corporations, accounting firms and regulatory agencies. This Act is consisted of 11 titles and each one of those titles describes one or more requirements to follow. So in all the aim of this act is to create better Visual in accounting and greater accountability for corporate executives. The Sarbanes-Oxley Act created new standards for corporate accountability as well as new penalties for acts of wrongdoing. It changes how corporate boards and executives must interact with each other and with corporate auditors. It removes the defense of "I wasn't aware of financial issues" from…show more content…
Oxley; the vote in the senate was totally in favor, ending with 97-to-0 votes in favor. The Act, which is administered by the Securities and Exchange Commission (SEC), was passed in the wake of a myriad of corporate scandals. What these scandals had in common was false reporting of selected financial transactions. For instance, companies such as Enron, WorldCom and Tyco covered up or misrepresented a variety of questionable transactions, resulting in huge losses to stakeholders and a crisis in investor confidence. Sarbanes-Oxley aims to enhance corporate governance and strengthen corporate internal controls and

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