Objective: Explain generally accepted accounting principles (GAAP).

In the early part of this century the financial markets were widely affected by corporate and other types of fraud. In the wake of the devastation to investors the United States Congress passed the Sarbanes-Oxley Act. This act, among other things, added transparency requirements to corporations that are required to file with the Securities Exchange Commission (SEC)

Read: https://www.sarbanes-oxley-101.com/sarbanes-oxley-faq.htm

• Discuss and summarize the major provisions of the Sarbanes-Oxley Act.
  • Do you feel these requirements are necessary for corporations to be transparent?
  • Are there any requirements that create too much of a burden for corporations to follow?