Assignment 7 A Primer On Sarbanes-Oxley

Primer on Sarbanes OxleyStudent NameCourse NameUniversity NameIssues which led to Sarbanes OxleyInvestors rely on financial information provided by corporations to guide their investing decisions. In the first years of the twenty-first century, numerous accounting and financial scandals rocked such major corporations as Adelphia, Enron, Peregrine Systems, Tyco International, and WorldCom. The scandals revealed fraud, securities violations, and thievery at the highest executive levels. Public confidence in the stock market and in the honesty of corporate executives was severely shaken. These financial scandals prompted the U.S. Congress to pass the Sarbanes-Oxley Act of 2002, which dramatically enhanced reporting standards and oversight of publicly traded U.S. companies (McEnroe, 2007).Sarbanes Oxley was necessityOrganizations that were thought of as "too big to fail" did fail, and consumer and government trust went down with them. Some examples include Tyco, Enron and Parmalat. Regulatory risks are no longer just about the ability to comply, but have become more about the ability for executives to ensure that planning and processes keep up with the pace of regulatory change. The situation is exacerbated by poor