A two page paper that discuss the advantages and disadvantages of sarbanes Oxley act

A two page paper that discuss the advantages and disadvantages of sarbanes Oxley act
Solution:
After the Enron debacle in the year 2001 which was followed by many corporate frauds
like WorldCom, Anderson, Global Crossing, etc. a need for a legislation was most desirable
which could guide the corporates about the ethical practices. The major finding in all these
corporate failures was the involvement of management and auditors in the fraud. Thus a need for
legislation was indispensable which guide the role of management and auditors and form a
proper internal control system. With a view to incorporate all these necessities in May 2002, less
than a year after the Enron filled an application for bankruptcy Sarbanes Oxley Act (SOX) was
enacted. It was named after Paul S. Sarbanes and Michel G. Oxley who were responsible for its
formation.
The main objective was to create a legislation to hold CEO’s and CFO’s accountable (criminally
and civilly) for the deficiency in the financial reports.
Due to the undergoing corporate scandals the public trust was shakened as a result of which
Congress enacted SOX in the year 2002. All the publicly traded companies were asked to
comply with the requirements of SOX. The security exchange commission (SEC) was entrusted
to oversee the compliance of SOX and the...