THE TAX ADVANTAGES AND DISADVANTAGES OF SARBANES-OXLEY
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The Tax Advantages and Disadvantages of Sarbanes-Oxley
MS: Accounting: Taxation, Liberty University
ACCT 612
February 19 , 2023
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to Porteah Purcell.
Email: [email protected]
THE TAX ADVANTAGES AND DISADVANTAGES OF SARBANES-OXLEY
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Summary
Congress enacted the Sarbanes-Oxley Act (SOX) to stop accounting fraud and promote financial
reporting transparency. Senator Paul Sarbanes and Representative Michael Oxley are honored in
the legislation's names. SOX sections address many of the problems underlying financial
reporting and accounting fraud. The paper also stated that SOX established new accountability
guidelines for public firms. The SOX Act included several features intended to attempt and stop
the kind of fraud that eventually led to the demise of Enron and WorldCom, as well as a sizable
