Sarbanes-Oxley Act Of 2002 Summary

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Sarbanes-Oxley was one of the most important changes to the legal structure of financial accounting in the last century. The corporate scandals that led to its creation were the Enron Corporation and Worldcom scandals. These scandals included everything from misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of corporate assets and last, but not least, underreporting liabilities and participating in security frauds. Congress eventually passed The Sarbanes-Oxley Act of 2002 which provides provisions growing oversight of public accounting firms, giving informers protections for the employees who assist with investigating behaviors that violates federal and state laws by imposing civil and criminal

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