Essay about Sarbanes Oxley Act of 2002
Descriptions of the main aspects of the regulatory environment which will protect the public from fraud within corporations are going to be provided in this paper. A special attention to the Sarbanes – Oxley Act of 2002 (SOX) requirement; along with an evaluation of whether Sarbanes-Oxley Act will be effective in avoiding future frauds based on their implemented rules and regulations.
The main aspects of the regulatory environment are based on the different laws and regulations the different governmental institutions such as federal, state, and local developed to create control over business practices. The regulatory environment creates a positive business financial operational environment as well as efficiency …show more content…
In today’s environment, many are utilizing the market as a way to secure their future. The way to secure the future is by purchasing and paying for a home, pay for children college tuition, as well as any other expenses. As investors, it is important that the SEC does protect these individuals. According to the SEC (2013) “the common interest of all Americans in a growing economy that produces jobs, improves our standard of living, and protects the value of our savings means that all of the SEC's actions must be taken with an eye toward promoting the capital formation that is necessary to sustain economic growth” (para. 4).
The U.S. Securities and Exchange Commission (2013) states “the laws and rules that govern the securities industry in the United States derive from a simple and straightforward concept: all investors, whether large institutions or private individuals, should have access to certain basic facts about an investment prior to buying it, and so long as they hold it” (para. 6). To ensure this rule is followed by ever organization the SEC requires public companies to make the appropriate financial state available to the general public. Making this statement public, future investors as well as current investors can