The Sarbanes Oxley Act Of 2002

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Policy Paper The Sarbanes-Oxley Act of 2002 Jared Destine Business 102 - Section 122 July 26, 2015 Destine 2 Table of Contents Introduction……………………………………………..…………………………………3 History…………………………………………………...………………………….......4-5 Main Objectives/Description……………………………………………………………5-6 Title I……………………………………………………...…………………………….6-7 Title II………………………………………..………………….………...…………….7-8 Title III…………………………………………………………………………………….8 Title IV………………………………………………..…………………………………...9 Title V……………………………………………………………………..………………9 Title VI…………………………….……………………………………….………….…10 Title VII……………………………………………………..…...………………………10 Title VIII…………………………………………………………………...................10-11 Title IX………………………………………………………...……...……………….…11 Title…show more content…
Numerous scandals broke out in the early 2000s, losing the trust of investors in the public market. Similar to the Great Depression, investors lost trust quickly. President Bush was practically forced to sign the Sarbanes-Oxley Act of 2002 into law, which he did on July 30, 2002. The name of the law generates from its two creators, Senator Paul Sarbanes and Representative Michael Oxley. The overall reason for the creation of the Sarbanes Oxley Act was market failure; moreover market failure due to information asymmetry. The Sarbanes-Oxley Act of 2002 is referred to as SOX. SOX’s goal was to primarily fix the lousy auditing and accounting of public companies in the United States by composing new, strict regulations. Many companies falsified information and there was no specific method to observe and make sure each company put out correct information to the public. The market lost billions of dollars and stock prices plummeted in result of the scandals of several public companies. To implement the new, strict auditing system, the Securities and Exchange Commission (SEC) established the Public Company Accounting Oversight Board (PCAOB). The Sarbanes-Oxley Act was born in 2002 and although it is almost 13 years old, there is still much debate about SOX having more benefits than costs. In my paper I look to address the law’s history, current situation, objectives, implementation, Destine 4 policy analysis, and strengths/weaknesses. In
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