That way, companies and entrepreneurs alike could generate profits that would give investors encouraging yields on the funds that they contributed.
The Sarbanes-Oxley Act, which owes its moniker to the two members of Congress who drafted it, is the core piece of legislation designed to protect shareholders that came out of early 21st century scandals relating to the financial reporting perpetrated by such former giants as Enron and Worldcom.
The investing public, and sometimes also the company management, cannot understand how the auditor could possibly overlook any fraud within the organization, given that the role of the auditor is to examine the transactions performed during the year, and ensure that the assets and liabilities are correctly stated on the balance sheet.