Question

The director of your accounting department has requested that you conduct research on the Sarbanes- Oxley Act of 2002 (SOX) where you are to summarize the effects SOX has had on improving corporate governance. In addition, research, identify, and summarize a specific corporate crime case or issue.

The summary should include a good description of the facts of the case, the issue before the court, the legal reasoning and decision or outcome (court's ruling) of the case, if there is one. Lastly, state whether SOX has created more or less confidence in the capital markets.

Answer 1

Sarbanes Oxley Act(SOX) to protect shareholders and general public from accounting errors and fraud practices done by corporate.

SOX improve corporate governance in corporate. It checks IT department and accounting departments of the company.

SOX keep all business records and electronic records of the company.

SOX check any false records or alteration in the company report.

It stores business records securely.

It creates more confidence in stock market as now companies are in vigilance. So the company keep their data fairly. It keeps confidence in public.