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Impact of Sarbanes-Oxley Act

The Sarbanes-Oxley Act was enacted in response to the corporate scandals that inundated the financial community in 2001 and 2002. In your opinion, what was the most important aspect of Sarbanes-Oxley? Be sure to support your answer.

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The official name of the Sarbanes-Oxley Act is the Public Company Accounting Reform and Investor Protection Act, and its main goal was to deal with issues related to the auditing of publically-held companies in the United States, which many believed was not working properly at the time. Therefore, in my opinion, the most important aspect of Sarbanes-Oxley was the creation of the Public Company Accounting Oversight Board (PCAOB), which oversees and regulates auditing, ending more than 100 years of self-regulation at the federal level by the public company audit profession. As stated in the Sarbanes-Oxley Act, the purpose of the PCAOB is to "protect the interests of investors and further the public interest in the preparation of informative, fair and independent audit reports" (

Under section 101 of the ...