Law 531 Assignment Week 6 Regulatory Compliance And Governance

Regulatory Compliance and GovernanceName:Institutional affiliation:Regulatory Compliance and GovernanceImplementing Sarbanes-Oxley Act of 2002 (SOX) can be a challenging responsibility especially at the start of being a public company. The Act was formulated as a mechanism to stop corporate fraud and enhance accountability in corporate companies. Corporate frauds have cost many business and shareholders millions and the role of the SOX is to provide oversight and guidance to corporate boards, executives, and practitioners (Cheeseman, 2015). SOX have been credited for the improvement of corporate governance and the development of stronger ethics. Since the Enron scandal, there have been few companies that have gone under, but with limited scale as Enron. That is attributed to the immediate implementation of SOX which was stimulated by the Enron scandal. SOX have helped in strengthening the roles and responsibilities of the CEO and CFO in addressing accountability for all the disclosures and related controls. The Act has also increased professionalism and engagement in corporate world and part of the corporate audit committees (Emir, 2016). However, the Act has gotten some sticks after it failed