Define Sarbanes Oxley Act of 2002

Define Sarbanes Oxley-To define Sarbanes Oxley, consider that it is thought to be one of the most far reaching reforms of the practices of American business is the era of Franklin Roosevelt.

Sarbanes Oxley summary--The purpose of Sarbanes Oxley Act was to enhance corporate responsibility, improve financial disclosures and combat corporate and accounting fraud. It also created the Public Company Accounting Oversight Board (PCAOB) to oversee the activities of the auditing profession.

Why Was Sarbanes Oxley Created?-The Sarbanes Oxley environment was public disgust with the WorldCom and the Enron scandals.

Effect of Sarbanes Oxley Act-The Sarbanes Oxley law changed the way businesses retain records. While it does not specify specific business practices or how business should store records, it does specify how long records should be kept and which records need to be maintained. The act specifies that paper and electronic records must be kept for five years.

Sarbanes Oxley Overview-The Sarbanes Oxley regulations are meant protect the public and investors from accounting errors and fraud.

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