History of Sox Essay Example

that reviewing partners and lead auditors rotate off of audits every 5 years and that all critical accounting policies and practices are reported to the firm's audit committee.The Sarbanes-Oxley Act has a section, the fifth title, that deals with potential conflicts of interest that securities analysts may encounter when dealing with publicly traded companies. This title is designed to create more trust in securities research and protect the independence and objectivity of securities analysts. The sixth title of the Act increases the resources and authority available to the Securities and Exchange Commission (SEC), which includes the power to discipline and prohibit advisors and stockbrokers from practicing. It also grants the courts the authority to prohibit the offering of penny stocks. The seventh title focuses on various studies and reports to be conducted by the Government Accountability Office (GAO), including consolidation of public accounting firms, credit rating agencies, violators and violations, enforcement actions, and investment banks. The Sarbanes-Oxley Act also covers corporate and criminal fraud accountability.