Question

Name at least two changes brought about by Sarbanes Oxley (SOX) Act of 2002.

Answer 1

	The following are two changes brought about by the Sarbanes-Oxley Act of 2002:
1)	The Sarbanes-Oxley act makes directors and officers personally liable for the accuracy of financial reports.
	Prior to the act, executives of publicly owned companies like Worldcom and Enron were found
	manipulating financial reports for their own vested interests.
2)	The Sarbanes-Oxley act established the public company accounting oversight board.
	The board sets standards for public accountants and enforces lead audit partner
	rotation every five years for the same public company.
	Prior to the act, Enron's audit firm received compensation from Enron.
	However, Enron had pressurized Arthur Anderson not to properly disclose
	financial information. Enron had created Special purpose entities
	to misrepresent their income and Arthur Anderson was game to the fraudulent
	endeavor.