Question

Was Sarbanes-Oxley necessary, or is it merely a reiteration of existing requirements? Discuss. (You will need to look at the state of the law pre Sarb-Ox.)

Answer 1

Sarbanes-oxley was need of the hour after the collapse of Lehman brother and enron etc. Exisitng law were not that strict and directive on the responsibilty of the director of the company. It also has increased the fine and punishments for wrong doing. It has also tighten the standard for Auditor, Director, lawyer etc. With this the role of Audit committee has increased significantly. The Sarbanes-Oxley Act significantly increased the disclosure requirement.

WORD LIMIT WAS NOT PROVIDED THEREFORE BRIEF ANSWER IS PROVIDED.