The Sarbanes-Oxley Act

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The Sarbanes–Oxley Act (SOX) of 2002 was enacted in July30,2002 and is a United States federal law setting new or expanded requirements for all US public company boards management and public accounting firms. Sarbanes-Oxley Act was enacted following a prolonged period of corporate scandals involving large public companies from 2000 to 2002, this was to restore investors confidence in markets and close loopholes for public companies to defraud investors. This act has had a profound effect on cooperate governance in the US, it requires public companies to strengthen audit committees, perform internal controls tests, set personal liability of directors and officers for accuracy of financial statements, and strengthen disclosure. The Sarbanes-Oxley

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