An Analysis Of The Sarbanes-Oxley Act Of 2002

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Indeed accountants are ethically obligated to report financial information accurately. In effect, Emerson, Conroy and Stanley (2007) stated that corporate scandals that made news, including Enron and WorldCom, triggered the public attention on the accounting practices that caused the fall of these companies. Consequently, the debate focused on blaming accounting practices or the standards. In order to resolve the issues of the standards, the US Congress has passed the Sarbanes-Oxley Act of 2002. In fact, the American Institute of Certified Public Accountants (AICPA) revealed that this Act represented the most crucial legislation that affects the accounting profession since 1933. Moreover, one of the provisions of Sarbanes-Oxley constitutes
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