SARBANES OXLEY ACT The Sarbanes Oxley Act was passed in 2002 and came into effect in response to major accounting scandals such as Enron. The Act was intended to restore the public’s confidence in the

SARBANES OXLEY ACT The Sarbanes Oxley Act was passed in 2002 and came into effect in response to major accounting scandals such as Enron. The Act was intended to restore the public’s confidence in the

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SARBANES OXLEY ACT

The Sarbanes Oxley Act was passed in 2002 and came into effect in response to major accounting scandals such as Enron. The Act was intended to restore the public’s confidence in the accounting profession and in the stock market. Sarbanes Oxley Act Section 802 pertains to corporate and criminal fraud accountability.

The section imposes penalties of up to ten years imprisonment for accountants who knowingly and willingly violate the maintenance or review papers of an audit (Sarbanes). The section also imposes fines and imprisonment up to twenty years for knowingly destroying documents or falsifying records that impend a legal investigation (Sarbanes).

The strict fines and penalties help to detour accountants and business employees from participating in fraud and other illegal activities. There are also many other parts of the Sarbanes Oxley