Sarbanes Oxley Act Of 2002

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Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 know to be called in the Senate as Public Company Accounting Reform and in the House of Representatives as Investor Protection Act or Corporate and auditing Accounting and Responsibility Act, was make into law on July 30th 2002. The Sarbanes-Oxley Act (SOX) is names after two major supporters in the House and the Senate, named after U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. With these supporters help the bill pasted with large support in both the House and the Senate, 423 in favor, 3 opposed, and 8 abstaining in the House and 99 in favor, 1 abstaining in the Senate. The act imposed additional penalties for fraudulent financial activities and made top level…show more content…
In April of 2002 the house passed Corporate and Auditing Accountability, Responsibility, and Transparency Act (CAARTA) and then passed the bill to the Senate’s Senate Banking Committee that had the support of the SEC and the president at the time George W. Bush. The bill passed the house with a vote of 334 to 90. At the same time the Senate Banking Committee was considering CAARTA Senator Paul Sarbanes, Chairman of the Committee was crafting his own bill to reform business practices, Senate Bill 2673. The senator’s bill passed the committee on June 18, 2002 with a vote of 17 to…show more content…
The PCAOB founded by the SOX is a nonprofit corporation established to watch public company to safeguard investor interest and assure the accuracy of finical statements. The PCAOB also guides the audits of broker and dealers, which includes compliance reports filed pursuant to SEC. Before the establishment of SOX public companies were responsible for governing and assuring its own accuracy and detecting of fraudulent activities within the company. Title I of SOX contains the nine sections that contain the establishing guild lines for the formation of PCAOB. It also dictates the board tasked with the registering auditors and the process and procedures to become

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