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Accountants face a number of unique and precarious situations in their daily work. As a result of scandals and fraud in the financial world, numerous regulations and laws were enacted. One such influential regulation is the Sarbanes-Oxley Act, which established the Public Company Accounting Oversight Board.
Research the passage and implementation of the Sarbanes-Oxley Act of 2002 and address the following questions:
1. Which liability concerns unique to accountants does the Sarbanes-Oxley Act address?
2. What must businesses and accounting firms do to comply with its requirements?
3. What are the costs of complying with Sarbanes-Oxley?
4. Based on your research, do you believe the Sarbanes-Oxley Act has been effective?
5. Explain your answer, with examples.
Financial Statement Analysis and Preparation
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