Sarbanes Oxley and Auditor Responsibility
Question 1
As a result of the sudden collapse of many successful firms and the increased incidents of fraud in financial reporting that were witnessed at the beginning of this century, investors lost confidence in reported accounting information and the auditors who attest to accuracy and transparency of financial statements. The SEC imposed tougher corporate governance and accounting regulations in 2002 known as Sarbanes-Oxley Act (SOX).
Required:
State the specific SOX regulations that aim at promoting transparency in corporate reporting and raising professional accounting standards.
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