Discuss internal controls with purpose of protecting shareholder rights
In 2002, after the accounting deceptions of the management of many multi-million dollar corporations (with Enron being the benchmark name of that time period), the Security and Exchange Commission (SEC) successfully lobbied the U.S. Congress to pass strict accounting internal control regulation in what is now known as the Sarbanes-Oxley Act (SOX) of 2002. After reading Orin’s article “Ethical Guidance and Constraint under the Sarbanes-Oxley Act of 2002” (2008), found at: Orin, R.M. (2008).
Solution PreviewThe Sarbanes-Oxley Act (SOX) of 2002 was enacted to restore the public confidence and integrity of the financial market. The Act ensured the protection of shareholders rights through the implementation of effective business ethics which required all the corporates to publish their…………………………..