Sarbanes Oxley act of 2002 and its impact on corporate world and Textile industry in Bangladesh

Abstract

Sarbanes Oxley Act, one of the new dimensions in the corporate world, introduced first in the USA in 2002. In the recent time Bangladeshi Textile Company used this act in their organization. As the part of the paper my main focus is to give brief idea about the act and analyze the impact of this act on the Textile Sector in Bangladesh. The Legislation came into force in 2002 and introduced major changes to the regulation of financial practice and corporate governance. The Sarbanes Oxley act, named after co-creators Senator Paul Sarbanes of Maryland and Representative Michael Oxley of Ohio, who were its main architects, it also set a number of deadlines for compliance. The Sarbanes Oxley act was enacted in response to a series of high-profile financial scandals that occurred in the early 200s at companies including Enron, WorldCom and Tyco that rattled investor confidence. There are several reasons that are role behind to adopt Sarbanes Oxley Act in the corporate world and textile industry. These reasons are identified as-insufficient and lack of proper knowledgeable accountants, lacking the quality or quantity required for the accountants, poor corporate governance procedures, lacking the proper way of using the accounting laws and rules in the organization, and so on. The Sarbanes Oxley act is arranged into eleven titles. As far as compliance is concerned, the most important sections within these are often considered to be 204, 302, 401, 404, 409, 802 and 906. In this report I have tried my best to give a brief idea about the topic and its effect in the textile sector and in the conclusion part an opinion based on the overall discussion and the references from where I took help to complete the report.