Sarbanes-Oxley

Introduction

Securities Exchange Commission is the highest authority which administers and monitors the audit of U .S Listed Companies at NYSE NASDAQ and Dow Zones . All U .S . Listed Companies which get traded at U .S .bourses , have to comply with the FASB rules and practice GAAP standards of accounting . Non-compliance to any of the auditing rules prescribed by GAAP would be seriously viewed . U .S . Federal Government works in the interest of public investors and it expects all public companies to work in a transparent method by disclosing fair transactions

in annual financial statements of all public companies Particularly , with the collapse of Enron , which is the world 's largest corporation , which shocked the entire corporate world , with the clean opinion of company 's auditor , Arthur Anderson . The emphasis here is more on auditing committees and board of directors of the company who must participate and work without any prejudicial interest , with the fact that Board of Directors are the fiduciary officers of a company who work and intermediate between shareholders and management of the company whereas Auditors are the representatives of public investors who must in all respects protect and safeguard the investments of public . In spite of highly qualified CFOs , COOs and CEOs , who are penalized for falling part of the non-compliance , officers also invite criminal charges . In to prevent future scandals in corporate America and also to protect all the investments of investors , President Bush signed the law of SOX on 30th July , 2002 and...