SOX Project Essay Example | Topics and Well Written Essays - 2500 words

SOX Project - Essay Example Correspondingly, the study reveals that the company has been able to conduct operations in a reliable as well as sustainable manner. Economy and finance are interrelated subjects in the present day context. Thus, financial institutions are required to protect themselves from crisis and recession conditions for better business sustainability. It is with this notion that the United States Federal Law has been implemented at different levels to protect financial institutions from forecasted crises. Additionally, these laws have been enacted with the intention of ascertaining that financial institutions are administered well proficiently to minimize malpractices conducted by corporate entities at often instances (Ryu et al., 2006). A prominent example of such a law is the US implemented Sarbanes-Oxley Act (SOX), which was enacted in the year 2002 with the intention of restoring confidence among market segments and corporate sectors worldwide following the liquidation of Enron Corporation. This Act was intended to assist in resolving issues existing within the auditing or accounting practices conducted by professional s as per the company legislations. Formally, in the Senate, the SOX Act is known as â€Å"Public Company Accounting Reform and Investor Protection Act† and in the House, it is identified as â€Å"Corporate and Auditing Accountability and Responsibility Act† (OSHA, 2011). In this essay, the effectiveness of the SOX Act will be assessed with consideration to HSBC Finance Corporation, which is a subsidiary of Hong Kong Shanghai Banking Corporation (HSBC) Group, headquartered in the UK. It is a financial service providing company. The company is also identified to provide different financial services that include auto loans, real estate loans, insurance products and Visa credit card as well as MasterCard loans among others. In this context, the company operating in the US is required to