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Running Head: SARBANES-OXLEY ACT OF 2002Sarbanes-Oxley Act Of 2002Students NameProfessors NameCourse TitleDate1SARBANES-OXLEY ACT OF 20022The Sarbanes-Oxley Act of 2002 was an act that was introduced by the U.S Congress in2002. The main aim of passing the law was to protect investors and businessmen from thelikelihood of fraudulent accounting activities by organizations. Remarkably, the Sarbanes Oxley Act detailed specific reforms for the purpose of the improvement of the financialdisclosures from corporations and ensure the prevention of fraud. Also, the Sarbanes Oxley Actwas passed to respond to the accounting scandals that had taken place in the most of thecorporations during the early 2000s. Such corporations that had been involved in scandalsincluded Enron, WorldCom, and Tyco shook the confidence of businessmen and investors on thecredibility of financial statements. Thus, there was the need for an overhaul of the regulatorystandards that were to be adhered by all the corporations.The Sarbanes Oxley Act led to the creation of new aspects and concepts on corporateresponsibilities. It also outlined the penalties for lack of the adherence to the regulatorystandards. The Sarbanes Oxley Act put penalties for lack of compliance to be eitherimprisonment or fines or both. It defined the records that should be kept and for the period oftime they should be kept rather than how the business records should be stored. According to thesp ...


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