Suppose you were an inventor and someone stole your money. Your loss was $5 billion.
However, we do not have to worry about it because the Sarbanes-Oxley Act (SOX) was
already passed on July 30, 2002 and was signed by President Bush. Who should we say
thanks to? Thanks to representative Michael Oxley and Senator Paul Sarbanes. We believe
that the act improves all business statements and reputations, because before that act too
many companies stole a lot of money. The estimate is from $1 million to $10 trillion.
These losses affect everyone. This research paper will summarize the Sarbanes-Oxley Act
and why the act is so very important.
The Sarbanes-Oxley Act is one of the most important legislations for businesses. The act
protects shareholders and the general public from accounting errors and fraudulent
practices in corporations. The act fights against fraud within the accounting statements in
the United States. The act was approved by the Securities and Exchange Commission,
which a lot of people wrote many complaints about at the time and tried to publish rules on
the requirements of the law. Michael Cohn reflects that, “A decade since the enactment of
the Sarbanes-Oxley Act of 2002, the majority of executives and other professionals agree
in a new survey that internal control over financial reporting structure in their
organizations has significantly or moderately improved since compliance with the