The Sarbanes-Oxley Act, commonly referred to as SOX, was created in July 2002 by the US Congress. This symbolise came about because of a wave of corporate history scandals. somewhat participants of the scandals were WorldCom, Enron, and Tyco. According to The Effects of Sarbanes-Oxley on the Public Accounting exertion (2006), The legislation was designed to increase the oversight and regulation of the accounting profession. By strengthening corporate governance and increasing the transparence of financial audits, the Act aimed to restore public confidence in corporate America. (p. 1). The act included provisions that set standards for auditing overseen by the Public Company Accounting Oversight Board (PCAOB); deepen the definition of independence by the auditor to restrict things interchangeable consulting services; made stricter penalties for corporate fraud; and set the requirements for more(prenominal) in-depth detail of disclosures of financial information.
The felonious financial actions on mole Street over the past several years cede forced the federal government to in-act laws to protect investors and the integrity of the straining market. One of those laws is the Sarbanes-Oxley Act (SOX) of 2002 which has been received with both criticism and praise.
This virgin law contains additional corporate board responsibilities to criminal penalties for dishonest acts and allows for owing(p)er oversight.
Besides auditing company financials, whistle blowers are a great resource used in the enforcement the SOX Act. Most of the employees who have claimed whistleblower protection have been dramatically unsuccessful. Mowrey, Cash, & Dickens (2010) stated First, because the lyric poem of the Act indicates that such protection does exist (p. 432).
Along with the new-made law of Sarbanes-Oxley Act, the federal government has included sub-pages which companies moldiness take after with. These sub-pages are broken down into specific sections in how the issuers must provide their accounting...If you want to get a full essay, nightspot it on our website: Orderessay
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