Sarbanes-Oxley

Sarbanes-Oxley - and any false reports are considered a...

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Joe Littman BUS 101 The Sarbanes-Oxley Act of 2002 was designed to prevent future accounting fraud in large public companies. It was a reaction to multiple frauds committed by large companies such as Enron, Adelphia, and WorldCom. This bill is important to corporate governance because it outlines new guidelines for Financial Reporting. It requires company senior executives to be personally responsible for their firms financial reports
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Unformatted text preview: and any false reports are considered a crime. This means that company managers are extra careful when they approve the records so they don’t report false numbers that could get them put in jail. This act protects investors from high level fraud that could decrease the value of their stocks....
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