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The Sarbanes-Oxley Act of 2002

Topic: The Sarbanes-Oxley Act of 2002.
Also known as SOX is legislation enacted in response to the high profile Enron and WorldCom financial scandals to protect shareholders and general public from accounting errors and fraudulent practices in the enterprise. SOX was enacted in response to the accounting scandals in the early 2000s.
Although the act’s introduction is credited with calming financial markets and raising investor confidence, its unprecedented reporting burdens and paperwork requirements are blamed for extremely high compliance costs and a share of decline in the competitiveness of the U.S Financial markets.
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