We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Sarbanes Oxley Act Master - Essay Example

Comments (0)
Summary
Sarbanes Oxley Act (SOX) is considered to be a successful Act by most of the Audit firms due to the assurance it provides through financial statements by fairly presenting the condition of a business and requires executive management to assume personal responsibility for their accuracy and completeness…
Download full paper
GRAB THE BEST PAPER

Extract of sample
Sarbanes Oxley Act Master

Download file to see previous pages... (Letwin, 2004)
One reason for its significance is its scope along with the material shift it signifies in the balance of federal and state regulation of corporations. Historically, substantive regulation of corporate procedure and governance has been primarily the province of state regulation, while the federal securities laws have regulated disclosure. (Klimko, May 2004)
Second reason is that SOX seeks to improve investor confidence by tightening government regulation of the accounting, reporting, and corporate governance practices of public companies. Many of the Act's provisions require the SEC to adopt implementing rules, and many rules have been adopted since the Act became law. (Klimko, May 2004) In this respect positive changes are recorded in corporate auditing controls and compliance procedures.
The Act also established the Public Company Accounting Oversight Board to regulate accounting firms who perform audits on the financial statements of publicly held companies. The board's mission is clear: to tighten accounting standards and restore confidence in the profession. Subject to direct SEC supervision, this body also is responsible for disciplinary action--everything from investigation to significant fines--against any company found in noncompliance with the Act. (Longnecker, 2004)

As is generally the case with governmental intervention in the affairs of business, Sarbanes-Oxley has triggered many unintended side effects. Most experts agree that it has changed several facets of business, including the concept of the executive seat; the way honest, hard-working CEOs interpret their roles; and the methods scandal-weary boards use to operate and make decisions moving forward. (Longnecker, 2004)

Further, the uncertainty surrounding the legislation's impact on auditing, financial reporting, executive loans, etc. has had a chilling effect on operations in boardrooms across the U.S. Leading decision makers at companies are, in many cases, so intently focused on legislative issues that they have been distracted from fully focusing efforts on their business' primary operations and creating shareholder value. Additionally, it is not just the CEO and CFO who are being asked to certify financial records and take on additional risks and responsibilities. Although not specifically mandated by Sarbanes-Oxley, many companies are requiring certifications of financial results by their division presidents, department heads, and other senior management in an effort to comply with corporate governance and controls. As the process continues to filter down through the ranks, simply conforming with these laws could end up costing shareholders more than they ever thought possible. In essence, the ripple effect of Sarbanes-Oxley very easily could take businesses from a place of under regulation to one of overregulation, which can be just as dangerous for a variety of reasons. (Longnecker, 200 ...Download file to see next pagesRead More
Comments (0)
Click to create a comment
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Sarbanes-oxley act 2002
It is the system by which companies are directed and controlled in the interests of shareholders and other stakeholders. These major collapses caused a great concern for shareholders and investors around the globe resulting in a huge decrease in the confidence of both the shareholders as well as the investors.
2 Pages(500 words)Essay
Sarbanes-Oxley Act
Additionally, this study revealed that the formation of Public Company Accounting Oversight Board (PCAOB) under the Sarbanes-Oxley Act also resulted in strengthening the regulations to a next higher level and ensuring better professional credibility thereafter.
4 Pages(1000 words)Essay
Sarbanes Oxley Act
Scenario 2 wished to establish whether or not a CFO or CEO is liable for using their respective position to influence an "audit report" of a public corporation. This can be explained by title XI on fraud accountability. It specifies that tampering and fraud of financial records either by overstatement or understatement attracted a penalty. This may lead to an extent of freezing payment which seems either overstated or understated.
4 Pages(1000 words)Essay
Sarbanes Oxley Act
The SPE was the form of the off balance sheet finance which was used by the Management of the Enron Corporation. It is thought that the management used the SPE to hide the external liabilities from the investors and regulators. There are several weaknesses in the corporate governance, internal and auditing which are leading to an increase in the corporate scandals in United States.
8 Pages(2000 words)Essay
Sarbanes-Oxley Act
What has caused this downhill slip aside from the terrorist’s deliberate attack weaken the economy? Enron Corporation is in Energy commerce, involved in electric utilities and power gas
8 Pages(2000 words)Essay
Sarbanes Oxley Act
In fact, especially for nonprofit entities, the provisions of the SOX may very well directly apply to them. SOX requirements such as the establishment of an audit committee, good governance, adequate financial
4 Pages(1000 words)Essay
Learning Review.Review the placement and academic learning. Identify and reflect upon two pieces of learning about social work practice and link them to the module teaching provided. 2- Describe how your understanding of ADP/AOP has developed during
Clients endure the incapacitating consequences of such life conditions. The human suffering and despairs encountered by social workers nowadays are
8 Pages(2000 words)Essay
International Strategic Alliances(PROJECT TO WRITE IN ACADEMIC REPORT)
In line with this, the article written by Shahanaghi & Yavarian (2010) focused on integrating the integrated Multi Objective Decision Making (MODM) and Multi
8 Pages(2000 words)Essay
Sarbanes-Oxley Act
The Sarbanes- Oxley Act or the Sarbox Act is an Act of Investor Protection as well as Reform of Public Company Accounting. It was enacted in mid-year 2002. This was subsequent to
2 Pages(500 words)Essay
Sarbanes-Oxley Act of 2002 essay
Three of the huge financial scandals involved Tyco, WorldCom, and the infamous Enron debacle. Due to pressures from the investment community the government intervened by creating a new regulation
2 Pages(500 words)Essay
Let us find you another Essay on topic Sarbanes Oxley Act Master Essay for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us