Compliance With Sarbanes Oxley Act for Companies in United States Essay

Compliance With Sarbanes Oxley Act for Companies in United States - Essay lessonAccounting is a key area in every organizations business. Correct put down and representation of material financial and operational facts about a company is critical for stakeholders to measure their interests into the company. some(prenominal) industry standards are available for correct recording, calculation, and representation of this information. In addition, almost every country makes or adopts an accounting and internal control system which is mandatory for all the companies to follow. As time passes by, needs and requirements of refreshed and comprehensive systems emerge that necessitates changes in the way traditional accounting and control systems operate.4.2BackgroundThe corporate humanness in United States took severe setbacks when scandals were surfaced about many large and multinational organizations in late twentieth century. The companies like Enron, Tyco, and WorldCom were all victim s of incorrect, ambiguous, unethical and inappropriate practices which remained hidden for a long period before they were finally identified and brought to the attention of the world. This sequence of events negatively affected shareholders and general publics trust all over the reliability and accuracy of financial information as published by companies. A general looking at was that of distrust, disbelieve, doubt and annoyance with the audit and internal controls systems of organizations. This state of affairs triggered a requirement for a jurisprudence that could establish legal requirements for companies to ensure.