When Sarbanes-Oxley regulations were created, their sole purpose was to restore the integrity and faith back with corporations and executives that were caught up in the many fraud scandals brought on by Tyco, Enron, and such. Yet, surprisingly to learn, many companies have done little to change their prevention and monitoring of fraudulent acts. This makes many wonder, “Is Sarbanes-Oxley an effective tool where fraud prevention is concerned?”
One of the policies under Sarbanes-Oxley is to create a paper-trail illustrating how and what a company does in regards to financial operations and data. This costly and time consuming exercise is efficient with tracking data; however, it does little to prevent fraud itself.
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