What is the significance of the Sarbanes-Oxley Act on Wall Street?
The Sarbanes-Oxley Act (SOX) of 2002 was passed by the US Congress in response to accounting scandals such as Enron and WorldCom that shook the financial world and eroded investor confidence. The act was named after its sponsors, Senator Paul Sarbanes and Representative Michael Oxley, and it introduced sweeping changes to the way public companies and accounting firms conduct their business.
The SOX Act established new or enhanced standards for corporate accountability, financial disclosures, and internal controls, among others. It required CEOs and CFOs to certify the accuracy of their companies' financial statements and disclosures, and created the Public Company Accounting Oversight Board (PCAOB) to oversee the audits and practices of accounting firms that audit public companies.
The Sarbanes-Oxley Act has had a profound impact on Wall Street and the financial industry. It has brought greater transparency and integrity to financial reporting, improving investor confidence and protecting investors from corporate fraud and scandals. It has also increased the cost of compliance for companies and accounting firms, and some critics argue that it has made the US capital markets less competitive compared to other countries with less stringent regulatory regimes.
- What Are The Benefits Of Eating A Rainbow Of Colorful Vegetables
- How Can You Effectively Showcase Your Experience In A Job Application If You Have Been Self Employed
- What Is The Knossos And Why Is It Significant
- What Are Some Easy Vegetable Recipes For Beginners
- What Common Kitchen Item Can Be Used To Measure Ones Shoe Size
- What Is The Role Of The Circumstellar Disk In The Formation Of The Solar System
- What Are The Ethical Considerations Surrounding Sustainable Energy Development
- How Do I Create Forms And Reports In Microsoft Access
- What Is The Deepest Man Made Hole On Earth
- Which Song Released In 1982 Is One Of Madonnas Earliest And Most Enduring Hits