Sarbanes-Oxley Act of 2002

Sarbanes-Oxley Act of 2002

Introduction

In United States of America three organizations has the authority to amend or introduce new legislation for financial accounting of corporation. However, frequent financial scandals from major and reputed organization in the country forced the government to consider this issue urgently (Jung, 2003).

On 30 July 2002, American Competitiveness and Corporate Accountability act of 2002, which is most commonly known as the Sarbanes-Oxley Act was incorporated in the US legal system. The main objective of this law was to address the financial performance of all organization currently operating the country (Kohlmeyer, et al, 2002).

However, this ...