Survey Of Accounting
Survey Of Accounting
5th Edition
ISBN: 9781259631122
Author: Edmonds, Thomas P.
Publisher: Mcgraw-hill Education,
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Chapter 4, Problem 1Q
To determine

Ascertain the situation which motivated Congress to pass the Sarbanes–Oxley Act (SOX) of 2002.

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Explanation of Solution

Sarbanes–Oxley Act (SOX) of 2002:

SOX are the act passed by the government to address the corporate scandals. This act regulates and assesses the internal control system of publicly traded companies.

  • The devastating effects of the scandals of Company E and Company W motivated Congress to pass the Sarbanes–Oxley Act (SOX) of 2002.

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