Sarbanes-Oxley Act (SOX) and Dodd-Frank Act

Abstract

From the unprofessionalism conduct of Albert Dunlap abrasive management at Sunbeam to the failure of Enron, MCI WorldCom and Global Crossing at the turn of the century, it suggests the nature of accounting scandals characterizing the US corporate sector. While the magnitude of the loss greatly affects the investment community, the full picture of the immediate burden to the economy emerging from the irrational accounting scandals mandates government intervention through legislative solutions.

Alike other counts of government interventions, including the Sherman Antitrust Act (1890), the Clayton Antitrust Act (1914), the Securities Act (1934), and
the Wagner Act (1935); the Sarbanes-Oxley Act (2002) and the Dodd-Frank Act (2010) joins landmark legislation's meant to generate a turning point for the American corporate. While the enactment of the Sarbanes-Oxley and Dodd-Frank acts sought reinstating public confidence in corporate management, they influence contemporary accounting and auditing practices.