Sarbanes-Oxley

Running Head : SARBANES OXLEY ACT , THE PUBLIC ACCOUNTING REFORM

Sarbanes Oxley Act

The Public Company Accounting Reform and Investor Protection Act of 2002 (Your Name

Advanced Accounting

The Sarbanes Oxley

I . Introduction

A . How Sarbanes Oxley Act Came Into View

Accounting is a profession comprised of brilliant individuals . In the process , with too much knowledge of this profession , some accountants have managed their way into ploying acts that are out of ethical standards and eventually became abuses harming the public (Earl Powers , 2007 . These acts were heightened by the

Enron and WorldCom scandals forcing the public and the United States government to enforce some laws and regulations to prevent them

Senator Paul Sarbanes and Representative Michael G . Oxley were the ones who held their heads together in leading their co-legislators in making the desired regulations for the safety of the public when it comes to financial matters . These two led the way to the birth of Sarbanes Oxley Act , otherwise known as the Public Company Accounting Reform and Investor Protection Act of 2002 , and more popularly known as SOX or Sarbox in the financial community

Signed into federal law on July 30 , 2002 , the House of Representatives smoothly passed the bill (423 vs . 3 ) and it was then unanimously approved by the Senate (99 vs . 0

Even the United States Securities and Exchange Commission have put a big deal in the rulemaking and reports on the progress of the Act , starting as far back as to the preparation to Implement Sarbanes-Oxley Act Requirement for CEO And CFO Certification of SEC Filings which was press-released in August 2 , 2002 as well as answering the questions of the public in their efforts to respond to Frequently Asked Questions (FAQ ) regarding auditor independence which they have press-released on August 13 , 2003

B . Accounting Frauds and Scandals of 2002 and the Accounting Profession

The sensational Enron scandal had a big participation ' upon the passage of the SarbOx . This scandal has always been mentioned in accountancy classes and up to now , its stigma has remained in the financial world . Professors of Accounting classes , especially that of Accounting Information Systems and Internal Audit related courses have made it appear and sound that this scandal brought into action with the accounting fraud is an integral part of the course . What is this Enron scandal then ? And what other accounting frauds have paved the way in awakening the public for a need of more refined laws when it comes to financial frauds

Five companies made their way to the strong scrutiny of public opinion back in 2002 when they were discovered to have high pro corporate fraud scandals (AP News , 2007 . Among these five , Enron stands in the first line . Other companies found fraudulent with their respective former Chief Executive Officers convicted are Enterasys , Qwest , Adelphia and WorldCom . Since Enron was the most sensational and have made its stigma to the world up to the present , it is worth noting what has become of the case

Criminal charges...