The Sarbanes- Oxley Act of 2002 is created by the PCAOB(Public company accounting oversight board) monitors the takeover action in the US and protecting the investor from the manipulate practice and fraudulent financial reporting bythe corporation.

This act crackdown the fraud and prohibited the auditor to provide consulting service to the client they auditing.

The Sarbanes- Oxley Act of 2002 had a major impact on the accounting profession by

1. This act created a strict new rule for an accountant to record book keeping.

2. This act credited new penalties if their accountant and auditor violated the securities laws.

3. It set a standard of ethics for the best practice for accounting and takes action against the lawbreakers.