Why was the Sarbanes-Oxley Act developed and enacted?
Why was the Sarbanes-Oxley Act developed and enacted?
Introduction:-
The Sarbanes–Oxley Act of 2002 is a federal law in the United States that sets specific financial record keeping and reporting criteria for businesses. The act, also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and the "Corporate and Auditing Accountability, Responsibility, and Transparency Act," was passed in both houses of Congress. (in the House), and colloquially known as Sarbanes–Oxley, Sarbox, or SOX, is divided into eleven sections that impose requirements on all U.S. public company boards of directors and management, as well as public accounting firms. A number of Act restrictions, including as willful destruction of evidence to hinder a federal investigation, apply to privately held businesses as well.
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