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Sarbanes-Oxley Act of 2002 and IT Controls Free Essay, Term Paper and Book Report

Introduction The Sarbanes-Oxley Act of 2002 (SOX) is the public company accounting reform and investor protection act signed into law on July 30, 2002 in response to a number of Fortune 500 companies� involvement in corporate and accounting scandals. These widely published corporate debacles, including those affecting Enron, WorldCom and Tyco cost investors billions of dollars when the share prices of the affected companies collapsed. In affect, investor confidence in the securities markets hit rock bottom. The purpose of SOX was to empower the Securities and Exchange Commission(SEC) of the U.S. so that it could oversee corporate governance of public organizations in hopes of restoring investor confidence. President Bush reflected the impact of this act stating that no law of such significance to businesses has been signed since the presidency of Franklin D. Roosevelt in the U.S. The SOX Act of 2002 was named after its main architects, Senator Paul Sarbanes and Representative Michael Oxley. SOX establishes a number of compliance rules for financial practice that ensures ac......

Word Count: 3439
Page Count: 13.7  (250 words a page / double spaced)

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