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Sample Essay

.  Introduction

The recent years have witnessed a number of financial and corporate scandals that have severely impacted the market place and made the investors in particular fear for the safety of their investments. To ease this fear and make the market conducive to investment, the Sarbanes Oxley Act (which will be referred to as ‘SOX’ henceforth in this report) of 2002 was passed by the US Senate.

This Act represents some of the most crucial legislation since 1930’s. After the corporate frauds that plagued the corporations, there was a great deal of pressure and impetus on the regulators of the financial and corporate sector in the United States. SOX was viewed as a move to make the regulatory and accounting framework much more solid and dependable so that the people who invested their hard earned money into the capital market would not be affected and not lose money due to fraudulent activities of corporations.

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