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The Sarbanes-Oxley Act
Sarbanes-Oxley Act Article Analysis This article discussed the reasons why the Sarbanes-Oxley Act was enacted. The corporate fraud and dishonesty the was present in companies such as Enron Corp, WorldCom, and Adelphia Communications, Inc. required the Federal government to enact legislation that would protect the free enterprise system within the United States. The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB) that is responsible for regulating accounting firms that perform audits of publicly held companies. The PCAOB was established as a result of an accounting and auditing firm, Arthur Anderson, acting unethically and allowing large corporations to mislead investors and falsify financial statements.
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