Is The Sarbanes Oxley Act Of 2002 Capable Of Preventing Future Accounting Scandals?

2672 Words Mar 13th, 2015 11 Pages
University of Bedfordshire

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Is The Sarbanes-Oxley Act of 2002 capable of preventing future accounting scandals?

Samaira Latif
2/18/2015

Table of Contents
Introduction 3
Discussion 4
Conclusion 8
Bibliography 9

Introduction

The main purpose of this research proposal will be to focusing on the Sarbanes-Oxley Act also known as SOX which was enacted on the 30th July 2002. The Sarbanes-Oxley Act was named after the two benefactors which are U.S Senator Paul Sarbanes and U.S Representative Michael Garver Oxley. This act was established after several high profile accounting scandals which occurred in the United States such as Worldcom and Enron the aim was to prevent such cases from occurring again in the future. To put the issue into perspective, the Enron scandal in 2001 resulted in many employees losing their jobs, thousands of employees and shareholders had lost their retirement accounts and shareholders lost a total of $74 billion. A number of accounting scandals have occurred both in the United Stated and the United Kingdom a study will be carried to determine how they were handled, whether anyone was held responsible and incarcerated and finally if any laws or acts were put in place and how they differed within the two countries. Although it has come under a great deal of criticism this is only expected when implementing a new system along with the negative aspects it also entails to have a positive impact within accounting which will be later discussed.…

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