Question

in your own words, how did the Sarbanes and Oxley Act come about? NO PLAGIARISM

Answer 1

Sarbanes and Oxley ACT 2002

The US Congress passed the sarbanes-oxley Act of 2002 on July 30 of that year to help protect investors from fraudulent financial reporting by corporations. Also known as the SOX act of 2002 and the corporate responsibility act 2002, it is mandated strict reforms to existing securities regulations and imposed tough new penalties on lawbreakers.

The sarbanes Oxley act 2002 came in response to financial scandals in the early 2000s involving publicly traded companies such as Enron corporation, Tyco international plc, and WorldCom. The high profile frauds shook investor confidence in the trustworthiness of corporate financial statements and led many to demand an overhaul of decades old regulatory standards.

The act took its name from its two sponsors -

Sen. Paul S. Sarbanes (D-md) and

Rep. Michael G. Oxley (R-Ohio)

Understanding the sarbanes Oxley act

The rules and enforcement policies outlined in the sarbanes Oxley act of 2002 amended or supplemented existing laws dealing with security regulation, including the securities exchange act of 1934 and other laws enforced by the securities and exchange commission (SEC). the new law set out reforms and additions in four principal areas :-

1. Corporate responsibility

2. Increased criminal punishment

3. Accounting regulations

4. New projections.

These are all the information regarding the evolution and existence of sarbanes and Oxley act.

These are all the information required to solve the given question.

I hope, all the above mentioned explanations and information are useful and helpful to you.

Thank you.