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.
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" (www.sec.gov).
Under section 101 of the ...