The Sarbanes-Oxley Act of 2002—Restoring Investor Confidence

Abstract

The article presents the author's comments on the U.S. Sarbanes-Oxley Act of 2002, which was established to restore investors' confidence after many people in the U.S. suffered due to frauds committed by companies like Enron Corp. and WorldCom Inc. It informs that the Sarbanes-Oxley act requires that a company's top officials sign the financial statements, so that if the numbers turn out to be wrong or fraudulent, they can be held accountable.