Sarbanes Oxley Act of 2002 - The Public Accounting Oversight Board

SARBANES OXLEY

The Sarbanes-Oxley Act (SOX ) is a document that is promoted to affect change

in the corporate environment generally by stressing issues of public accountability and

disclosure in the financial operations of companies . It is an act that represents the

government 's and the Security and Exchange Commission 's interest in promoting ethical

standards in terms of financial disclosure in the corporate environment SOX is designed

as a sort of wake-up call in the aftermath of many corporate scandals such as those which

beset Enron and

Worldcom , and thus , the act is designed to prevent future scandals by

highlighting the need for ethical accountability in the external business environment

from a legally mandated perspective . Despite its revolutionary stance as an act that will

change the entire global industry of financial liability and responsibility , the real situation

is often a mix of different fundamental variables that challenge the notion of the act as

being the immediate impetus of a new in accounting , auditing , and accountability

There are still companies and corporations that are ascribing to old rules or ignoring the

changes that have come to the external business environment as a result of SOX . And

there will be more changes in the future as the SEC implements more and more of the

act 's provisions . Therefore , thinking that SOX represents merely a theoretical set of

issues may be mistaken

Many see the Act as showing accelerated filing laws that hinder the whole

corporate climate (Goldgaber , 2005 . However , it would...