Sarbanes-Oxley Informative Paper

276 Words2 Pages
The Sarbanes-Oxley act was passed in 2002, it was a direct result of the major corporation scandals that happened a few years prior involving Enron, Tyco, and WorldCom. This act was put in place in order to protect business shareholders and the general public from documentations error and manipulation. The Sarbanes-Oxley act covers all forms of documentation and any violators that do not follow the rules and regulations of this act are dealt with accordingly. All people handling documents and correspondence must follow three guidelines. The first rule speaks on consequence of destroying, concealing, mutilating, or falsifying information. The repercussion of such violations may result in a fine and jail time. The next guideline focuses on accountants and the length of time a document should be stored. Finally the last regulation focuses on the type of document that has to be stored such as; work papers, electronic communications, and any other document. Advantages: An increase on the job market because positions have to be created for enforcers of this act. Another advantage of this act is the security and accountability. Disadvantages: the disadvantages of the SOX would be that it is costly and time-consuming. The SOX also has opportunity for error if not done correctly. The way the SOX impacts the event industry is how industry professionals keep up with documentation of deals and also affected us financially because of budgets cuts, correlating with the act. The group in our industry that would be affected the most would be non-profit groups because the documentation of the business between them and the client would be harder to keep track

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