In this article, the effectiveness of SOX Act 2002 is evaluated as the regulatory solution to different scandals related to the accounting by realigning the behaviors and actions of the auditor agent and manager agent with the principals of the shareholders in order to maximize the intrinsic value of the firms. this article discusses that how implications of SOX give advantages to the share holders when agents put their own self-interest in business dealings. this aim has been accomplished by developing a principal ...