Inside the months subsequent for the Enron collapse, no much less than two dozen SOX related bills had been proposed in Congress. And President Bush announced his personal ten-point program. The following objectives emerged from the substantial testimony, press conferences, and thick packets of proposed legislation and protracted hearings that ensued:
- Make management accountable. A few provisions of SOX seek to assure that management, accountants, and attorneys are held directly accountable for knowledge that tends to make it onto a company’s economic statements on their watches.
- Boost disclosure. SOX’s provisions address the truth that a few essential events and somewhat shocking transactions possessing to perform with corporate scandal escaped scrutiny basically simply because they weren’t essential to become disclosed for the public.
- Conduct ordinary evaluations. SOX calls for the SEC to appear at suppliers even more regularly and even more closely. This new requirement is known as a reaction for the SEC’s declining to critique Enron’s records for a few years preceding its bankruptcy filing and consequential loss to investors.
- Make accountants accountable. SOX seeks to purge the accounting sector on the conflicts of interest, economic self-dealing, and plain old poor judgment that placed the investing public at threat when relying on “certified” economic statements.
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