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Sarbanes-Oxley Act - Essay Example
Author : kohlerkailey
Finance & Accounting
Pages 4 (1004 words)
Sarbanes-Oxley Act Abstract The principle aim of the paper was to analyse the effectiveness of the Sarbanes-Oxley Act in the domain of reducing corporate fraud or financial misconduct within any public organisation by regulating the accounting profession. Notably, Sarbanes-Oxley Act prevents companies and accounting professions through its regulations from adopting any unethical approach in developing financial statements that are illegal as well as unethical…
Sarbanes-Oxley Act The Sarbanes-Oxley Act is deemed to be quite effective in protecting the investors and enhancing the factor of accurateness and reliability in various corporate financial activities. It has further been noted that the act mainly aims at enhancing the above mentioned aspects in a constant basis with the implementation of strict laws and rules for audit committees of public companies, binding accounting professionals’ functions under the stated regimes (Rolf, 2005). Effectiveness of Sarbanes-Oxley Act in Minimizing Corporate Fraud and Protecting Investors The Sarbanes-Oxley Act, with its strict supervision encourages companies to adopt stern control system on their operational activities, which are expected to minimise the crime rates relating to investor fraud within the organisation. The effectiveness of the Sarbanes-Oxley Act can be exemplified from the fact that it has been able to develop various new legal enforcements with regard to deal with corporate fraud and ensure punitive measures for the wrongdoers within any business. ...