IntroductionA decade after the implementation of the Sarbanes-Oxley Act, people are beginning to discuss its effectiveness as a deterrent against unethical activities and fraudulent. This article analyzes the effectiveness of regulatory reforms and whether it is better to use regulatory and legal reforms or ethnic education to prevent the recurrence of fraudulent cases.Analysis on the effectiveness of regulatory reforms as a means of deterring fraud and unethical actions in auditing auditing is intentional misinterpretation to gain profit. (Mintz and Morris 2008, p.53) This includes financial reporting fraud and asset misappropriation, which are best represented respectively by the misrepresentations of debt in the Enron scandal and the theft of assets in the Tyco International scandal. What are unethical actions? Ethics in the business environment These are fundamental values ​​and standards that guide decision-making. (Mintz and Morris, 2008) Maxwell (2003) introduces the “golden rule” for deciding what constitutes ethics by asking the question “How would I like to be treated in a particular situation?” Therefore, unethical behaviors include allegedly inflating profits to meet shareholder expectations during the Healthsouth scandal in 2003. Improvement after reforms Culture change among auditors The United States Congress enacted the Sarbanes Act- Oxley in 2002 after major scandals exposed flaws in accounting policies. As Arthur Anderson LLP has a dual role in the Enron scandal, auditors are limited to audit types to maintain their independence under SOX Sec.201. Second. 10A of the Securities Exchange Act of 1934 is amended by requiring audit partners to rotate after five years of service. Lynn Turner, former chief accountant at the SEC, reports her signature middle of paper ......tection Act 1998 .Ripley, A. (2002) Cynthia Cooper: The Night Detective. Time Magazine. [Online] Available at: http://content.time.com/time/subscriber/article/0,33009,1003990-1,00.html [Accessed March 13, 2014] Soltani, B. (2007) Audit: An International Approach. Pearson Education Limited. Sweeney, P. (2012) Sarbanes-Oxley – A decade later. Financial Director. [Online] Available at: http://www.financialexecutives.org/ [Accessed March 12, 2014] United States Congress. (1934) Securities Exchange Act of 1934. Usvyatsky, O. (2013) Restatements: Where They Come From. [Online] Audit analysis. Available at: http://www.auditanalytics.com/blog/restatements-where-they-come-from/ [Accessed March 15, 2014]What is an Launcher Helpline alert ? [Online]. Available at: http://www.wisegeek.com/what-is-a-whistleblower-hotline.htm [Accessed March 13 2014]