The act enacted in response to monetary problems to protect the public by accounting mistakes and fraud. The act does not stipulate how a organization should shop their documents; rather, that defines which records should be stored and then for how long they're going to be kept. The action affects the financial corporations and the THIS department. Almost all business data must be salvaged for more than five years. The results for not following the rules will be fines, imprisonment, or the two. There are several sections to the Sarbanes-Oxley Act that describes the establishment, sign up, auditing, top quality control, rules, investigations as well as the disciplinary proceedings.
Sarbanes Oxley Act is focused towards discovering accounting scams in different open public companies. This paper talks about about various reasons for the creation of Sarbanes Oxley Act and causes that has been overlooked. Sarbanes Oxley Act is known as a US government law, which can be established to be able to set out the some standards for accounting firms, general public company boards and management. These requirements are established in order to overcome the problem of accounting scandals. Companies just like Enron and WorldCom have formulated major accounting scandals. Sarbanes Oxley Action protects the investors through the accounting scandals and ripoffs created by corporations. It has also released provision to get the improvement in intertnal auditing of the company. In addition to his economical reporting control mechanism in addition has enhanced, which in turn helps in finding the scam easily. It is analyzed that auditors can no longer detect the frauds easily. Manipulations inside the financial records are not recognized by the auditors and they count on the phony information inside the financial declaration. It has been reviewed that SOX eliminate the conflict with client positions by intimidating the auditing firm for...