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The Sarbanes-Oxley Act of 2002 (SOX) was a direct result of

The Sarbanes-Oxley Act of 2002 (SOX) was a direct result of the financial statement frauds that sank industry giants such as Enron and WorldCom.

What are the primary goals and tenets of SOX with respect to fraud?
How is SOX enforced?
What is PCAOB, its role, and based upon your individual research, is it an effective oversight body?
Based upon the goals of SOX, how is it implemented and enforced, and through your own experience and research (both if applicable), do you think that SOX has been a successful deterrent to financial statement fraud? Why or why not?

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What are the primary goals and tenets of SOX with respect to fraud?

The main goal of SOX is to prevent the massive accounting frauds from happening again, as what did with Enron and WorldCom. When a company that size sinks, it affects many people. People lost money, jobs, retirement accounts, benefits, and some people lost their life savings that they had invested in the company. When a company that big tanks, it also shakes the economy. The goal of SOX is to hold people accountable - we saw through the court hearings, especially for Enron, that no executive wanted to take responsibility, and everyone claimed to "not know" what was going on, even though the financial statements were on the desks of those who claimed ignorance. SOX holds people accountable. Example: Under SOX regulation, the CEO and the CFO MUST sign an affidavit stating that they are personally knowledgeable of the company's financial ...

Solution Summary

The Sarbanes-Oxley Act of 2002 (SOX) was a direct result of the financial statement frauds that sank industry giants such as Enron and WorldCom.

What are the primary goals and tenets of SOX with respect to fraud?
How is SOX enforced?
What is PCAOB, its role, and based upon your individual research, is it an effective oversight body?
Based upon the goals of SOX, how is it implemented and enforced, and through your own experience and research (both if applicable), do you think that SOX has been a successful deterrent to financial statement fraud? Why or why not?

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