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The Sarbanes-Oxley Act (PCAOB)

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The Sarbanes-Oxley Act (PCAOB)
Many changes in financial reporting have taken place as a result of The Sarbanes-Oxley Act. This legislation was passed by congress in 2002. It introduced important modifications and standards to the regulatory requirements of financial practice and corporate governance for all publicly traded companies in the United States. The SOX act is composed of eleven titles and includes important provisions such as Section 404 that deals with reporting of internal control processes by corporate management and the creation of The Public Company Accounting Oversight Board (PCAOB)
Prior to the inception of the Sarbanes-Oxley act, financial reporting regulations for firms and corporations were less stringent. Companies were able to go unnoticed if they
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