Ass 2
Ass 2
Ass 2
The U.S. has a statute known as the Sarbanes-Oxley Act of 2002. On July
30 of that year, Congress passed laws to assist shield investors from businesses
that provided false financial information. Its official name is the SOX Act of 2002,
and it demanded substantial updates to current securities laws as well as severe
extra punishments for violators. Financial scandals involving publicly listed
businesses including Enron Corporation, Tyco International plc, and WorldCom
in the early 2000s led to the creation of the Sarbanes-Oxley Act in 2002. The
well-publicized scams undermined investor faith in the reliability of company
financial statements, which caused many to call for a revision of the regulations'
long-standing requirements.
The Securities Exchange Act of 1934 and other laws implemented by the
Securities and Exchange Commission, as well as the regulations and
enforcement methods detailed in the Sarbanes-Oxley Act of 2002, altered or
enhanced already-existing laws governing the regulation of securities (SEC). The
new legislation included changes and improvements in four key areas, including
corporate accountability, heavier penalties for crimes, accounting regulation, and
new protections.
The primary goals of the Act were to control internal audits, financial
reporting, and other business processes at publicly listed corporations. All
businesses, even for-profit and private businesses, must abide by certain
restrictions, nevertheless. The Act also included penalties for failing to follow its
rules. Corporate governance and financial disclosure are important aspects of
Act compliance.
The laws governing punishments are found in Sections 802 and 906. They
prohibit changing documents in an effort to obstruct an inquiry and restrict
anybody from certifying a false or fraudulent financial report. We'll go into more
depth about these provisions later in the essay.
Kenton, W. (2022). Sarbanes-Oxley Act: What It Does to Protect Investors. Retrieved from.
https://www.investopedia.com/terms/s/sarbanesoxleyact.asp
Fruhlinger, J. (2020). The Sarbanes-Oxley Act explained: Definition, purpose, and provisions.
Retrieved from.
https://www.csoonline.com/article/3598292/the-sarbanes-oxley-act-explained-definition-purpose-and-
provisions.html
Cino, R. (2005). All Employers Should Consider the Impact of the Sarbanes-Oxley Act on Corporate
Compliance and Ethics Programs. Retrieved from.
https://www.jacksonlewis.com/resources-publication/all-employers-should-consider-impact-sarbanes-
oxley-act-corporate-compliance-and-ethics-programs