The Sarbanes Oxley Act ( Sox ) For A Company

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Introduction For this assignment I am going to try to describe the cost and benefits of implementing the Sarbanes Oxley Act (SOX) for a company. I will then move on to describe what it is, how to go about it, and what a company may need to properly implement it. The Sarbanes Oxley Act was approved and activated in 2002 to protect investors and to renew confidence in American companies from what happened with the fall of companies like Enron, HealthSouth, and WorldCom. This act was trusted to fix or find corruption in the companies and make them liable for their unethical activities. Although this act has proven to have many benefits, the cost of complying with the act for some companies has been much greater than expected. There are also negative effects of the Sarbanes Oxley Act that have been felt by not only companies, but investors in stock and consumers. With all this being said it lead to many asking the best question of all which was, Do the costs outweigh the benefits? The SOX Act was passed to improve the accountability of managers to shareholders however companies are finding the compliance costly, and are starting to question the true balance of the cost verses the benefits. What is the Sarbanes Oxley Act? The Sarbanes Oxley Act came into effect in July 2002; it was put in place to introduced mayor changes to the regulation of corporate governance as well as financial practice. This act was named after a Senator named Paul Sarbanes and a Representative named
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