A Reaction on SOX

         Sarbanes-Oxley is commonly known as SOX on the industry. SOX is named after its sponsors Senator Paul Sarbanes and Representative Michael G. Oxley. This is an act made as an answer to the financial scandals of companies such as Enron and WorldCom on the year 2002.

          According to www.sox-online.com, Sox is the law establishes new, stricter standards for all US publicly traded companies. It does not apply to privately companies. The Act is administered by the Securities and Exchange Commission (SEC), which deals with compliance, rules and requirements. The Act also created a new agency, the Public Company Accounting Oversight Board, or PCAOB, which is in charge of overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies.

          I like the Sarbanes-Oxley act personally because it make sure that the public companies financial statements accurate and really credible. This act have a great impact on federalsecurities because it really affects many corporate and accounting ac tions. I am just wondering why they only give it to the public companies and does not cover the private companies. It is a really good thing on how we can make sure that the corporate financial data that the companies shown to the public is accurate because it can affect public interest.