Sarbanes-Oxley Act Advantages

Decent Essays
Yes,according to me it should be followed by private companies because: One of the big advantages of this act is that companies are being held more accountable. There are specific rules about how the company must handle their accounting practices. The Sarbanes Oxley Act dictates what a company can, and cannot do. This means that the accounting of the company will strive to be more accurate. With this legislation, investors should have a little bit more peace of mind. Before the act took effect, investors were starting to lose faith in the system. Many companies had purposely deceived their investors. Investors did not know whether they could trust the information that was provided to them. The Sarbanes Oxley Act has helped investors feel comfortable
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