Sarbanes-Oxley's Internal Compliance Report

Although SOX strengthens internal control, requires a more transparent disclosure of off-balance sheet entities, and increases oversight and regulation on public auditors which are some of the issues of Enron and Worldcom had, it does not necessarily guarantee the prevention of a future another financial statement fraud. Sarbanes-Oxley also did not address the issue of mark-to-market accounting from Enron. Mark-to-market accounting allowed Enron to estimate future market values and record the profits as current earnings. Sarbanes-Oxley fails to address this large factor that led to Enron’s inflated profits and share price.
It can be reasoned that the provisions in Sarbanes-Oxley will reasonably satisfy the areas that allowed Enron, WorldCom