Impact Of Sarbanes Oxley Act On Accounting Firms Research Paper

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SngZna1990

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Write a 500 - 750 word paper on the following topic:

Compare and contrast the views of management and accountants regarding the changes required by the Sarbanes-Oxley Act on internal controls and how these changes have affected corporations, accounting firms, and investors.

The paper must be formatted according to APA 6th edition guidelines, and you need to use at least one external reference.

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Running Head: IMPACT OF SARBANES OXLEY ACT

IMPACT OF SARBANES OXLEY ACT
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IMPACT OF SARBANES OXLEY ACT
The Sarbanes-Oxley Act (SOX) was enacted in 2002 after a long period of scandals in
the corporate sector in the US experienced from 2000 to 2002. The main aim of the act was to
earn the investor’s trust in the financial markets and close the loopholes that allowed companies
to commit fraud against investors (Blokhin, 2018). Accounting scandals experienced in
companies such as Tyco, Enron, Arthur Andersen, and WorldCom caused huge losses among the
corporate sector and investors affecting the financial markets negatively. However, the SOX Act
requires that companies come up with an accounting framework that generates financial reports
that are verifiable through traceable means to ensure the accuracy and reliability of corporate
financial statements.
Comparing the current changes and the previous operations in business, the auditors have
the responsibility of analyzing a given company’s financial statement which is still the case with
the Sarbanes-Oxley Act. The only difference is that the SOX act increased accountability in the
respectiv...


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