Sarbanes Oxley Act Paper
Sarbanes Oxley Act
Introduction Sarbanes Oxley Act is focused towards identifying accounting frauds in different public companies. This paper discusses about various reasons for the introduction of Sarbanes Oxley Act and causes that has been overlooked.
Causes for Sarbanes-Oxley Act Sarbanes Oxley Act is US federal law, which is established in order to set out the some standards for accounting firms, public company boards and management. These standards are established in order to overcome the problem of accounting scandals. Companies such as Enron and WorldCom have created major accounting scandals. Sarbanes-Oxley Act protects the investors from the accounting scandals …show more content…
Ramification of Sarbanes Oxley Act for Short Run Sarbanes Oxley Act has made some ramification in order to change its task and responsibilities. SOX have outsourced its information system activities to other organization. Through this ramification nature of guidelines has not been affected but suppliers need to be changed. Sarbanes Oxley Act does not consider external auditors in order to perform this type of function. Momentum in Sarbanes Oxley Act has established on the basis of Securities and Exchange Commission (SEC) and New York Stock Exchange (NYSE)