Running Head: Sarbanes-Oxley Act Research Paper 1
Sarbanes-Oxley Act Research Paper
Tiannan Martin Zhang
Dallas Baptist University
April 30, 2015
ACCT4304
Sarbanes-Oxley Act Research Paper 2
Abstract
According to the article of Not everyone Hates Sarbox, it states that “Sarbanes-Oxley Act of
2002 is a legal act, which is approved by American congress in 2002, in order to protect
investors against the possibility of fraud by the company‘s accounting activities ” (Not everyone
Hates Sarbox, 2007). Moreover, Sar-box is an important legal act which involves accounting
professional regulation, corporate governance and securities market supervision. It mandated
strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
Sarbanes-Oxley Act Research Paper 3
Background
According to the article of Not everyone Hates Sarbox, it states that “Sarbanes-Oxley Act of
2002 is a legal act, which is approved by American congress in 2002, in order to protect
investors against the possibility of fraud by the company‘s accounting activities ” ( Not everyone
Hates Sarbox, 2007). Moreover, Sar-box is an important legal act which involves accounting
professional regulation, corporate governance and securities market supervision. It mandated
strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
What’s more, Sar-box act was developed in the early of twenty century to perform as a respond
to a great number of business financial fraud scandals. The scandals of big business companies
such as Enron, Tyco, WorldCom extremely affected the investors confidence in the financial
statements and the required an overhaul of managerial standards. In other words, these financial
