SARBANES-OXLEY

Sarbanes-Oxley

Sarbanes-Oxley

Introduction

The Sarbanes-Oxley Act of 2002 is a law that provides guidelines for accounting firms. These guidelines are to ensure that accounting firms with responsibility and proper audits of financial statements of the company. The bill was in response to the Enron fiasco. In response to major corporate accounting scandals at large U.S. companies such as Adelphia, Computer Associates, Enron, and WorldCom, to name a few, the United States Congress passed a sweeping legislation in July 2002 aimed at improving the integrity of financial statements and related audits and mandating certain corporate governance practices within publicly traded U.S. companies. This ...