The Sarbanes-Oxley Act (SOX)

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What is The Sarbanes-Oxley Act (SOX)? It may be one of the most pivotal financial acts to have come about in recent history. It is a law that was enacted in 2002 and signed by President George W. Bush (U.S Securities and Exchange Commission 2013). The Securities and Exchange Commission (SEC) enforce this law to regulate changes in financial practices and corporate governance. The main purpose of SOX is to protect shareholders and the public from accounting fraud and errors. Fundamentally, this law helps ensure companies’ financial records are integrity-sound and accurate.
SOX touches both company management and their accountants. With regard to the management, the SOX specifically incorporated new duties and liabilities for corporate

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