The act was initiated by US Senator Paul Sarbanes and US Representative Michael Oxley. It came as a result of the large financial scandals involving Worldcom, Enron, Arthur Andersen and Global Crossing. As of 2006, all publicly traded companies are required to submit an annual report of their effectiveness of their internal accounting controls. Non compliance to the Sarbanes-Oxley Act of 2002 can be detrimental to non US businesses who have a US presence and US companies alike. The Committee approved the final conference bill on July 24, 2002 and named it the Sarbanes-Oxley Act of 2002.
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