Essay --

IntroductionMy approach of this paper is to examine the effectiveness of using Sarbanes-Oxley (SOX) Act to ascertain how the Act receipt to capital market of regulating SEC bodied and external audited account firms for preventing and deterring fraud. Examining SOX, we identify any deficiencies and betterment for its effective implementation with reference to donnish research. With literature review on ethic, education, and culture for further fraud preventative measurement. Purpose to enact the Sarbanes-Oxley ActThe Sarbanes-Oxley (SOX) Act of 2002 was enacted as a chemical reaction to a number of major corporate and accounting shites including Enron, Tyco, Peregrine Systems, and WorldCom. These scandals, which price investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the US securities markets. It is the most far-reaching and significant new federal regulatory statute modify accountants and corporate governance sin ce the Securities Acts of 1933 and 1934. SOX act impact on accountant liabilities, oddly the new regulatory agency and also accounting independence. The focus of SOX 302 is on disclosure of controls and procedures, while SOX 404 focuses on internal control over monetary coverage. Under SOX Section 906, criminal penalties can be imposed on managers who knowingly certify a period report that does not nurse with the requirements. It is clearly comprehend the regulatory SEC corporate in their yearbook financial report one on the financial statements, one on watchfulnesss assessment of internal control effectiveness, and a trine on the effectiveness of internal control over financing reporting. intensity level of SOX Act of 2002Prior of the SOX Act, liability wou... ...It not only requires management to fork out an assessment of internal controls, but also requires auditors to provide an opinion on management assessment. It is therefore inflated the auditors fee and account con servatism, and increased management focus over financial reporting and internal control distracting managerial strategic actions.It is important for both management and auditors familiar with the process of implementing, evaluating, and reporting on internal control. It is also important to understand the impact of corporate governance isomorphic mechanisms such as audit committees and direct head of increased pressures from governmental and professional bodies to adopt certain professional recruit of ethic and organizational support as a moderator for deterring financial scandal arising from internal control weakness and misstatement of financial reporting.