Sarbanes Oxley (SOX) Act

Discussion Post Response #2
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Hello Sullivan! I agree that the Sarbanes Oxley Act (SOX) is a legal framework regulating public companies with a significant market capitalization in the United States. The Act was enacted to save firms against financial statement fraud. It incorporates heavy fines and substantial prison terms, thus effective in addressing financial crimes, especially corporate accounting fraud, which is common in most prominent firms and corporations (Bajra et al., 2023). The implementation and execution of the Act arose following a landmark case. One of the renowned landmark cases is the Enron scandal, which helped reveal accounting and fraudulent irregularities at Enron, one of the biggest trading firms in the United States.
Despite the SOX Act’s agendas and reforms to address the perceived challenges by emphasizing ethical accounting and auditing, financial-related frauds are still evidently observed in most companies (Palma, Hermanson & Mautz, 2018). An example of a food company that suffered significant losses is Barret Business firm. The internal control faults within the company resulted in inaccuracies in journal entries’ reviewing, approval, and documentation. T...