The Sarbanes-Oxley Act

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Sarbanes-Oxley Act

Occurring in the early 2000’s high profile companies such as Tyco, Enron, and WorldCom were part of high-profile financial scandals which worried investors. The Act was brought to Congress by U.S Congressmen Paul Sarbanes and Michael Oxley, and the purpose of the Act was to improve corporate governance and accountability. Also, the act not only targets the financial aspect of corporations, but the IT departments as well, which are responsible of storing a company’s electronic records. Furthermore, the Act created 3 new rules that would begin changing the way electronic records were managed. First, deals with alteration, destruction or falsification of records and resulting penalties. The second rule affects the retention
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