The Sarbanes Oxley Act ( Sox )

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Brief historical summary on SOX enactment The Sarbanes Oxley Act (SOX) was sanctioned in July 2002 with the objective of reestablishing public trust in the markets. SOX was promised as one of the opportunities for cultivating organizational ethics by clearly outlining the code of ethics. This included the raise of truthful and strong ethical behavior. SOX moreover, demands that corporate organizations to release codes applicable to the senior financial officer. Indorsing whistle blowing in the event of ethical misconduct is encouraged (Kessel, 2011). SOX was signed by President George Bush on July 30, 2002. Important corporate catastrophes had activated intense publicity and media disapproval followed the end of major corporations comprising of Enron, Arthur Andersen, Worldcom, Tyco, and Adelphia. This bill passed with unanimous votes and intense backing from both House and Senate (Kessel, 2011). The Sarbanes Oxley Act allowed the federal government to have durable guidelines of corporate governance along with inspecting the ethics for public companies. SOX creates the boundaries in regards to accounting companies and what they can offer These are services like: consulting, allowing corporate auditing organizations more responsibilities and accountabilities, enforcing public companies to make improved public releases - such as core financial controls assessment and permitting improved criminal and civil sanctions (Kessel, 2011). Moreover, SOX created the Public Company

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