Study On The SOX Act

"Sarbanes-Oxley Act of 2002"plays an important part in securities market regulation in America. The bill was enacted in the background that Enron and WorldCom accounting scandal broke out. Therefore, the development process of "Sarbanes-Oxley Act" was in a hurry, and there are some loopholes. The main contents of the Bill may be inducted that followed. For the first,the bill has strengthened the supervision of the accounting profession in the way of mandatory rotation of registered public accounting firms,and providing the services outside the scope of practice of auditors. Secondly,the bill has strengthened the supervision of the internal control of the listed company. Thirdly,the bill has strengthened the company's responsibility for financial reporting."Sarbanes-Oxley Act of 2002"has impacted on the American stock market deeply. We may draw some conclusions from the analysis. Firstly,we should take some moderate measures to regulate the accounting profession;Secondly, we should strengthen the internal control of listed companies on the basis of taking into account our national circumstances.Thirdly,we should improve the legislative process to ensure that the law will be updated timely.