Financial Statement Fraud is one of the biggest concerns for the auditors. I will mention Enron scandal to illustrate the magnitude of loss that causes to the investors, employees and other stakeholders of the company. It is everyone’s hope that the world will not experience another Enron or another WorldCom. In response to the aforementioned accounting scandals The Sarbanes–Oxley Act of 2002 (Pub.L. 107–204, 116 Stat. 745, enacted July 30, 2002), also known as the "Public Company Accounting Reform and Investor Protection Act" (in the Senate) and "Corporate and Auditing Accountability and Responsibility Act" (in the House) and more commonly called Sarbanes–Oxley, Sarbox was passed and the purpose of this Act is to protect investors and regulate Public Accounting Firms.