Sarbanes-Oxley Act (SOX) Summary

In 2001, the largest energy company in the United States – Enron, suddenly filed for bankruptcy protection, then, the number of corporate and accounting scandals constantly increased and affected so many largest companies, Especially in June 2002, the world’s telecommunications accounting scandal, completely combat the (US) investors on the (US) capital market confidence. In order to change this situation, the US Congress passed a very important bill Sarbanes-Oxley Act (SOX) in the US capital market to protect shareholders and the general public from corporate fraud and to solidify that the US market remains strong and that it is not only open for business, but it is a safe place to work and invest.

The bill, is arranged into eleven titles, or chapters. Chapters 1 to Chapters 6 is mainly related to the accounting profession and corporate behavior supervision, Chapters 7 requires the relevant departments to submit a number of research reports including: merger of accounting firms, credit rating agencies, market irregularities (Legal) implementation, investment banking and other research reports for the relevant implementing agencies reference, and as a reference for future legislation and Chapters 8 to 11 are mainly to raise criminal responsibility for corporate executives and white-collar offenses.

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Hamza Iqbal

I am 20 years old self-trained guy, a young part time blogger and computer experts last for four years. I am very passionate about blogging and my area of interests are SEO – Internet Marketing, Web Designing, business knowledge and keenness to learn Ethical Tricks as well.

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