Article Review Essay

Submitted By vnssa28
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University of Phoenix Material

Article Review Format Guide

MEMORANDUM
UNIVERSITY OF PHOENIX

DATE: December 17, 2013
TO: Instructor
FROM: Student
RE: SEC Charges Accountants and Firms with Sarbanes-Oxley Violations

ARTICLE SYNOPSIS

69 accounting firms and partners were charged by the Securities Exchange Commission with violating the Sarbanes-Oxley Act of 2002 by auditing companies without first registering with the Public Company Accounting Oversight Board (PCAOB). This board, who has the authority to subpoena and discipline accountants, was created after the corporate scandals of 2002. The Securities and Exchange Commission oversees the accounting board. The board was created to help protect outside investors by tightening the financial accounting controls. This significant action was the Security and Exchange Commission’s first case involving the violation of this particular law. Most of the offending companies settled with them rather than having fines imposed. The cases against 19 other firms and partners were still pending at the time of this article.

LEGAL ISSUE

Without first registering with the Public Company Accounting Oversight Board companies could easily work a “deal” with auditors, leading to such corporate scandals as Enron and Tyco. The law was created to protect stakeholders and these companies blatantly disregarded that law.

MANAGERIAL PERSPECTIVE

With these companies not following the law, this may cause some concern for…