ACT 560 CSUGC Impact of SOX on Corporate Governance Discussion
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The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to a series of corporate and accounting scandals in the 1990s. Over the years, corporate governance has been in the forefront of ethical discussions. Answer the two questions below:
Explain some impact of SOX on corporate governance and audit quality.
Provide recent examples of how SOX prevented or reduced accounting fraud instances in U.S. publicly traded firms.
Source: Kaya, H. D., & Banerjee, G. (2015). The short-term and long-term impacts of sarbanes-oxley act on independence and compensation of corporate board of directors. Journal of Global Business Issues, 9(1), 1-9.
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