The Sarbanes-Oxley Act

Words: 296
Pages: 2
Open Document
Yes, I think the Sarbanes-Oxley Act was the appropriate action to take to deal with the financial corruption in companies such as Enron and Worldcom. Before the Sarbanes-Oxley Act was developed these large firms could alter their financial statements frequently, since there was little or no oversight at all. The Sarbanes-Oxley Act requires accountants to perform stricter and even more thorough inspections when conducting a business audit for the different organizations (Ferrell, Ferrell, & Hirt, 2016). This act has definitely made some improvements to the way business owners and their accountants prepare their financial statements. Prior to the implementation of this law, these companies were gaining numerous wealth from taking other people's
Show More

Related Documents: The Sarbanes-Oxley Act

The Sarbanes-Oxley Act

Based on the 6 importance of Sarbanes-Oxley Act, he violated the first important thing is the CFO must ensure the integrity of financial reports. While, he perjury financial statements of the company. Secondly, he performed all of the auditing profession by himself, leading to fraud. Third, he has self-determination that sold 1.7 million shares of stock in another company. Therefore, He had has faced charges of making false statements and wire fraud lead to HealthSouth’s profit's inflation up to…

Words 162 - Pages 1

The Sarbanes-Oxley Act

Sarbanes-Oxley Act Occurring in the early 2000’s high profile companies such as Tyco, Enron, and WorldCom were part of high-profile financial scandals which worried investors. The Act was brought to Congress by U.S Congressmen Paul Sarbanes and Michael Oxley, and the purpose of the Act was to improve corporate governance and accountability. Also, the act not only targets the financial aspect of corporations, but the IT departments as well, which are responsible of storing a company’s electronic…

Words 404 - Pages 2

The Sarbanes-Oxley Act Of 2002

The Sarbanes-Oxley Act of 2002 The Sarbanes-Oxley Act of 2002 On July 30, 2002, President Bush signed the Sarbanes-Oxley Act of 2002 (SOX) into law, stating the legislation would be “The most far reaching reforms of American business practices since the time of Franklin Delano Roosevelt,” (Process, 2012). The Act was designed to mandate many reforms in order to require greater corporate responsibility, disclosure, transparency, and to combat against accounting fraud. In response to several…

Words 2815 - Pages 12

Sarbanes-Oxley Act Essay

Sarbanes-Oxley Act of 2002 James Gauck ACC/290 December 17, 2012 Susan Laymon Sarbanes-Oxley Act of 2002 On July 30, 2002, President Bush signed into law the Sarbanes-Oxley Act of 2002. The Act-which applies in general to publicly held companies and their audit firms-dramatically affects the accounting profession and impacts not just the largest accounting firms, but any CPA actively working as an auditor of, or for, a publicly traded company. The basic implications of the Act for accountants…

Words 482 - Pages 2

The Sarbanes-Oxley Act Of 2002

Introduction: The Sarbanes-Oxley Act of 2002 (SOX) is a United States federal law that set new or enhanced standards for all U.S. public company boards, management and public accounting firms. Sarbanes-Oxley introduced major changes to policies that govern publicly traded companies. The significance of SOX was to regain the communities support and trust, after several financial scandals among large corporations. In this report, we will also consider your internal controls and highlight the goods…

Words 1115 - Pages 5

Sarbanes-Oxley Act Essay

The Sarbanes-Oxley Act created new standards for corporate accountability as well as new penalties for acts of wrongdoing. It changes how corporate boards and executives must interact with each other and with corporate auditors. The Act specifies new financial reporting responsibilities, including adherence to new internal controls and procedures designed to ensure the validity of their financial records. The Sarbanes-Oxley Act, officially named the Public Company Accounting Reform and Investor Protection…

Words 641 - Pages 3

The Sarbanes-Oxley Act Of 2002

The Sarbanes–Oxley Act of 2002 also known as the Public Company Accounting Reform and Investor Protection Act of 2002, and simply as SOX, Sarbanes-Oxley (named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley), came as a result of several public scandals over the accounting practices of major U.S. companies including Enron, WorldCom, Tyco International, and Peregrine Systems. The Act affects U.S. publicly held companies, foreign companies registered with the SEC…

Words 809 - Pages 4

Sarbanes-Oxley Act Essay

Sarbanes-Oxley Act Corporation environments are continually changing with one exception-fraud. With particular reference to public organizations, fraud has been cited as the number one cause of loss of company funds. Losses occur either through misappropriation of funds or assets, or the exploitation of poor or lack of internal controls within the company. According to NYSSCPA.ORG, “President George W. Bush signed the Sarbanes-Oxley Act ( SOX) of 2002 (Public Law 107-204) on Tuesday, July 30…

Words 1542 - Pages 7

Sarbanes-Oxley Act Essay

The Sarbanes-Oxley Act The Public Company Accounting Reform and Investor Protection Act, more commonly known as The Sarbanes-Oxley Act (SOA), was created by Paul Sarbanes and Michael Oxley and signed into law on July 30, 2002. This act was created as a result of the numerous, fraudulent and financial corporate scandals that occurred within corporations such as Enron and many others. SOA’s purpose is to serve as a means to safeguard the stockholders, as well as other investors from any illegal business…

Words 673 - Pages 3

Sarbanes-Oxley Act Of 2002

Sarbanes-Oxley Act of 2002 Research Paper Imagine over $60 billion of shareholder value, almost $2.1 billion in pension plans, and initially 5,600 jobs - disappeared (Associated Press, 2006). One would have to wonder how that is possible. These are the consequences the investors and employees of Enron Corporation endured after the Enron scandal started to unravel. This paper will focus on the infamous accounting scandal of Enron Corporation. It will also discuss how the company was…

Words 2814 - Pages 12