Sox Article Review

SOX Paper

Catherine Richard

LAW/421

November 24, 2014

Mauri Hawkins

SOX Paper

The Sarbanes Oxley Act (SOX Act) was passed in 2002 to mandate a number of reforms that enhance the responsibility of corporations, financial disclosures and tackle accounting and corporate fraud. The SOX Act also created the PCOAB, or the Public Company Accounting Oversight Board to oversee auditing professionals activities and procedures  (Commission). This Act was passed in respose to Enron scandal and shredding of accounting documents or “tangible” evidence. Tangible is defined as having physical existence such as a laptop or papers and able to move from one place to another  (Melvin, 2011).

Sarbanes-Oxley Act of 2002

        The Sarbanes-Oxley Act of 2002 was based from the Enron case in which accounting documents were destroyed to obstruct evidence in the case. The Act was signed on July 30, 2002 by George Bush as he said this was “the most far reaching reforms of American business practices since the time of Franklin Delano Roosevelt” (Commission). This Act introduced major changes in the regulation of corporate governance and financial practice and set deadlines for compliance in the financial community. This Act was named after Senator Paul Sarbanes and Representative Michael Oxley as they were the main authors of the Act.

Section 802 of the SOX Act states:

“Whoever knowingly alters, destroys, mutilates, conceals, covers

up, falsifies, or makes a false entry in any record, document, or

tangible object with the intent to impede, obstruct, or influence

the investigation or proper administration of any matter within

the jurisdiction of any department or agency of the United States

or any case filed under title 11, or in relation to or contemplation

of any such matter or case, shall be fined under this title, imprisoned

not more than 20 years, or both.”