The scandals not only adversely affected the share price but also the general public lost trust on the securities market. Hence the Sarbanes Oxley Act was formed to increase the accountability of the public company so that in future such type of scandals can be avoided.
In this project a detail analysis has been made on the Sarbanes Oxley Act and independence responsibility view. The US GAAP has also been analyzed in the view of the Sarbanes Oxley Act. The US companies prepare the financial statement as per the US GAAP but due to the enactment of this act the public companies has to give some more disclosure apart from GAAP. This project involves a detail analysis of the problems of the Sarbanes Act and the US GAAP. The study also includes how and to what extent the act has impacted to the investor, officers of the company, directors, members and other stakeholders. At the end recommendations have been made on how the problems of this act can be solved and investor’s interest can be protected.
Brief Overview of Sarbanes Oxley Act of 2002
Sarbanes Oxley Act was enacted on July 30th, 2002. It increased the sanders to be maintained by all the public companies, its management and accounting firms. ...