A Research On Sarbanes-Oxley Act

Sarbanes-Oxley Act has been born for five years from 2002.In these five years,Chinese scholars have done much research work on this subject, but still disagree with each other on how to evaluate and use it for reference. The reason for the bifurcation is scholars always get interested in different parts of the Act,and seldom systematically research and evaluate this act from a special view.My article tries to sum up the main aim of the Act as preventing and detecting financial fraud in induction and statistical method, and from this view,analyzes the claims to security issuers,CPAs and government by the Act for the aim of antifraud.My article uses both the basic view of economic law,administrative law and criminal law and the knowledge of accounting and auditing to appraise Sarbanes-Oxley Act,and tells the shortages and aim for reformation of Chinese legislation.My article can be divided into five parts.The first part proves the reason and sense of the view of antifraud in my analysis from context,article of aim of legislation and other articles of the Act.The second part analyzes the claims to issuers of the Act:signing on the report to assure the effect Of internal control system and the severer criminal responsibility to the officers.This part also demonstrates the feasibility of the first claim and the necessity of the second in Chinese environment of accounting system and law.The third part analyzes the claims to CPAs:a higher level of independence,This part also demonstrates the measures we should take such as defining subject of independence,banning inconsistent operation, rotating the auditor and supervising by audit committee. The fourth part analyzes the claims to government:dividing the work with associations;a set frequency of investigation and running a "Fair Fund".This part praises reform of legislation in China to follow the lead of the first claim and gives reasons for why not follow the latter two ones.The fifth part suggests the name and the main content of the law China should make to prevent and detect financial fraud in security issuers.