Sarbanes Oxley Act Of 2002 Essay

Sarbanes Oxley Act Of 2002 Essay

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. The Sarbanes-Oxley Act of 2002 was created to protect investors from potential fraudulent activities from corporations (The Data Governance Institue). The Sarbanes-Oxley was created after issues such as Enron occurred. The motivation of this act was to hold CEOs and other corporation officials responsible and of the financial situations their company was in. The idea that corporations would record false number with their financial results was not only dishonest, but would cost the stakeholders a great amount of money (The Data Governance Institue). (Aubin, 2012) This law was to improve the security of the stakeholders and to assure them that there will be consequences for those who scam them of their money.
Critics of the Sarbanes-Oxley act may say that the act has not done enough to change the accounting and audit industry (Aubin, 2012). Critics also believe that the act is needs accounts to be everywhere and know everything, which is nearly impossible. The Sarbanes-Oxley act does not do enough to change the accounting industry; it has not resolved any conflict within the industry (Aubin, 2012).
I feel that this law is good for US companies, but even better for its stakeholders. The fact that there are laws and standards of how accounting and auditing is done, keeps honest companies from accidently doing something wrong, and it will straighten up companies who tend to bend the rules in order to make their profits look stronger. This is an act that strengthens the checks and balances of a public corporation so that there is no corrupt individuals that are trying to make personal financial gains. This law is there to improve the integrity of US companies.
I personally feel that this is a great law for US compani...


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