Sarbanes Oxley Purpose
by admin on Friday, September 15th, 2006 | Comments Off
sarbanes oxley purpose
Why did Congress pass the Sarbanes-Oxley Act of 2002? What was the purpose of the Sarbanes-Oxley Act of 2002?
This act was passed in response to the public outcry over the financial scandals involving Enron, WorldCom, Tyco International Ltd, Adelphia Communications, and others which resulted in stockholder, creditor, and investor losses in the millions and billions of dollars range.
The purpose of the act is to restore public confidence and trust in the financial statements of companies. It applies only to companies whose stock is traded on public exchanges.
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