The goal of the current study was to make up for the poor
governance that led to the financial crises including Tyco, WorldCom, and
Enron. In addition to identifying what businesses can and cannot do, the
Sarbanes Oxley Act also holds corporate management accountable for corporate
governance. This essay makes the case that the Sarbanes Oxley Act has given investors
a new lease on life and restored their faith in the US financial industry. The
Sarbanes Oxley Act tends to lessen corporate failures, audit failures, and a
long list of financial restatements that for years rocked the corporate world,
the financial market, and stoked widespread public resentment and skepticism.
According to the new norm, the auditor's opinion must mention the Board's
authority. Before the Sarbanes Oxley Function, auditors were subject to a
self-regulatory framework that did not protect their capacity to act
impartially and independently as watchdogs. Through a combination of
regulations and oversight that address conflicts of interest on the investor
side and a lack of accountability on the corporate side in order to improve
corporate governance, the Sarbanes-Oxley Act is signed into law in order to
restore investor confidence in public and financial markets. The Sarbanes Oxley
Act has improved the internal control environment for businesses. The
information provided to investors, who would rely on published financial
accounts to make wise investment decisions, will be more accurate and
trustworthy as a result.
Author(s) Details:
Kingsley Wokukwu,
Department of Business, Stillman College, Royal Super, Sonics
Enterprises, US.
Please see the link here: https://stm.bookpi.org/CABEF-V2/article/view/7643
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