The Sarbanes Oxley Act ( Sox ) Essay

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Major Provisions of SOX and Dodd-Frank
In the wake of the collapse of Enron and WorldCom corporations, and the widespread misstatements and omissions in corporate financial statements of a number of other SEC reporting companies, Congress passed the Sarbanes-Oxley Act (SOX) in 2002. The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (Dodd-Frank) is a conglomeration of a number of acts adopted to promote the financial stability of the United States by improving accountability and transparency in the financial system. The enactment of the Dodd-Frank is geared toward ending the notion of “too big to fail,” safeguarding taxpayers in the United States through ending bailouts, and shielding consumers from offensive monetary services practices. Even though SOX and Dodd-Frank have been highly praised as milestone legislation that expands protections of investors and consumers, they have also condemned as anti-competitive and extremely oppressive governmental regulation.
Overview of SOX and Dodd-Frank As previously mentioned, the Sarbanes-Oxley Act (SOX) was enacted by the U.S. Congress in 2002 following the collapse of WorldCom and Enron corporations. Despite being SEC reporting companies, these corporations collapsed because of omissions and misreporting in corporate financial statements. This legislation contains provisions that are classified in 11 major sections including auditor independence, corporate responsibility, improved financial disclosures,…

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