What accounting issues does the Sarbanes-Oxley Act of 2002 address? The provisions of this Act change the behavior of senior corporate executives and accounting professionals; but how?
 
The Sarbanes-Oxley Act of 2002 addresses intimate accounting rules and regulations that a public entity must ethically practice and adhere to. The model behind the creation of the act was due to accounting fraud amongst publicly trusted executives, accountant or not, of publicly held companies/corporations. Additionally, due to the provisions of the act and unlike private entities not subject to the act, the accounting behavior of senior corporate executives, all publicly held entities, and accounting professionals with relation to publicly held entities must follow a more strict character toward financial operation in accordance with the (PCAOB) Public Company Accounting Oversight Board – an entity established by the act, its provisions, the (SEC) Securities and Exchange Commision, and its provisions.
 
An effective solution or simply a creation of additional compliance paperwork?
 
Considering the colossal figure of publicly held companies and their affects toward the domestic economy, international economies, and especially, the well-being of investors, the Sarbanes-Oxley Act is an effective solution, regardless of additional compliance paperwork, to prevent unethical practices, stringently govern financial fraud, and protect the publics’ legitimate interests. Many investors invested in publicly held entities lose large amounts of their invested interests when such entities commit financial fraud; and in my opinion, if a publicly held entity adheres to “additional compliance paperwork,” the more they can be worthy of trust. However, due to the acts' stringent governing, a number of corporate entities who have once been public have opted to operate in the private sector.

~Chris LugTwo