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Sarbanes Oxley Act of 2002 was passed after a public demand which grew due to the scandalous exposure of several high level financial scandals in which a number of big corporate giants were involved. A number of Fortune 500 companies were found involved in these scandals and the investor confidence, had hit rock bottom. The purpose of Sarbanes Oxley Act was to empower the Securities and Exchange Commission of the U.S. so that it can keep an eye on the corporate governance and the investor's confidence in the market shall be reinstated.
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