Essay --

IntroductionMy approach of this paper is to examine the effectiveness of using Sarbanes-Oxley (SOX) Act to ascertain how the Act response to capital market of correct SEC corporate and external audit firms for preventing and deterring fraud. Examining SOX, we identify any deficiencies and betterment for its effective implementation with reference to academic research. With literature review on ethic, education, and agriculture for further fraud preventive measurement. Purpose to enact the Sarbanes-Oxley ActThe Sarbanes-Oxley (SOX) Act of 2002 was enacted as a reaction to a number of major corporate and score scandals including Enron, Tyco, Peregrine Systems, and WorldCom. These scandals, which cost 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 command affecting accountants and corporate governance since the Securities Ac ts of 1933 and 1934. SOX act doctor on accountant liabilities, particularly the new regulatory agency and as well as accounting independence. The focus of SOX 302 is on disclosure of controls and procedures, while SOX 404 focuses on indispensable control over financial musical themeing. Under SOX Section 906, criminal penalties can be imposed on managers who knowingly certify a period report that does not comfort with the requirements. It is clearly comprehend the regulatory SEC corporate in their annual financial report one on the financial statements, one on managements assessment of indwelling control effectiveness, and a third on the effectiveness of internal control over financing reporting.Effectiveness of SOX Act of 2002Prior of the SOX Act, liability wou... ...It not only requires management to provide 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 co nservatism, 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 result of increased pressures from governmental and professional bodies to adopt certain professional mandate of ethic and organizational support as a moderator for deterring financial scandal arising from internal control weakness and misstatement of financial reporting.