Question

The Sarbanes-Oxley Act (short name “SOX”) was an important piece of legislation passed in 2002 that has forever changed the face of corporate accountability. discuss the significance and implications of SOXact for the publicly listed corporations?

Answer 1

SOX act was established in the interest if financial investors, market and all relevant stakeholders to protect them from frauds, crimes or any other incident if thefts. This happened in leu of incidents like Enron. This includes amendment related to :-

1. The financial statements must be reviewed by CEO'S , CFO'S etc

2. The statements should be accurate

3. Disclosure of Corporate actions

4. Disclosure of internal controls

Etc.

Due to this markets became more efficient, investor trust increased, and the spread of fradulent transaction decreased

Also many negative effects to public companies including going off public happened because the cost of reporting with SEC increases

I hope this helps.

Took real efforts

Please press the like button

Thanks