Essay: The Sarbanes Oxley Act of 2002

Essay: The Sarbanes Oxley Act of 2002
June 7, 2011 Comments Off on Essay: The Sarbanes Oxley Act of 2002 Academic Papers on Business Studies,Sample Academic Papers admin

Sample Essay

The Sarbanes Oxley Act of 2002 was implemented to act as legislative measures to minimize the accounting frauds that have been ubiquitous in contemporary corporations. Enron was one such fraudulent corporation which used off balance sheet activities to cover up unprofitable ventures. Enron caused losses of billions of dollars to investors and many people lost their jobs.

However, management at Enron managed to make loads of money in the process. Sarbanes Oxley was implemented to prevent such cases as Enron from occurring again. Sarbanes Oxley has many problems and shortcomings which need to be addressed by the government. One of these problems is that the amount of fraud detected in companies who have implemented internal controls according to Sarbanes Oxley is larger than in those companies who have not done so.

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