Discuss the impact of Sarbanes-Oxley on a company’s internal controls. Be sure to define internal controls.
The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to a number of accounting scandals in major corporations that resulted in the loss of billions of investor dollars. Choose one accounting scandal that precipitated this legislation and discuss whether or not internal controls (or lack thereof) contributed to the scandal. Be sure to include an evaluation of how SOX affected internal controls and if post-SOX internal control requirements could have prevented it.
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