What is the relationship between Sarbanes-Oxley, whistleblower law and corporate fraud?

Sarbanes-Oxley, also known as the SOX Act, was passed into federal law in the United States in 2002 with the intention of combatting corporate fraud. This law gave rise to whistleblower laws in Washington and other states, which protect employees and other parties who report corporate fraud. Whistleblower laws are a type of legal protection for employees who have evidence of fraud or other illegal activities taking place within an organization. These laws allow employees to report the corruption without fear of retribution or punishment from their employer, as they are protected under the law. The relationship between Sarbanes-Oxley, whistleblower law and corporate fraud is that the SOX act established policies and regulations for corporations which can help in the detection of fraud, and whistleblower laws provide the legal protection for those who discover corporate fraud and wish to report it. Whistleblower laws have made it easier and safer for individuals to speak out against corporate fraud, as they know they will be protected. This has enabled more fraud to be identified and addressed, and the number of corporate fraud cases reported has risen significantly since the introduction of SOX and whistleblower laws.

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What is the relationship between Sarbanes-Oxley, whistleblower law and corporate fraud?

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