becoming more frequent and complex. One of the most famous corporate financial scandals is that of Enron. Enron has been acknowledged to be one of the largest bankruptcy and biggest audit failure in US history. Enron was an American energy company located in Texas. It was established in 1985 by Kenneth Lay when he merged two companies called Houston Natural Gas and Internorth together to form Enron. Enron was a very successful company when it began. It became the largest seller of natural gas in North
the 30th of July, 2002. This act brought about many changes to corporate government regulations as well as the financial practices. The chief architects of SOX were US senator Paul Sarbanes and US Representative Michael G. Oxley. Organizations like Enron, Worldcom, Xerox, MicroStrategy, Sunbeam etc. have one thing in common. They all have gone through serious accounting scandals due to flaws in their corporate governance. SOX was enacted as a reaction to these scandals. The other reasons are: 1. For