Cox Research Paper

Submitted By michaelcox18
Words: 2490
Pages: 10
Open Document
The Sarbanes-Oxley Act of 2002 and the PCAOB
Michael Cox
Liberty University
Abstract
As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession. As a result of the act, the PCAOB was created. Since its inception, the PCAOB has created some of the most importing accounting standards that are used every day by auditors of public companies. This paper takes a look at the Sarbanes-Oxley Act of 2002 and its effect on internal controls and small businesses. Also, I will discuss the purpose and specific pronouncements related to accounting information systems and internal controls; as well as the impact of possible future pronouncements.
Keywords: Sarbanes-Oxley, PCAOB, Accounting information systems

The Sarbanes-Oxley Act and the PCAOB
Massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, led to the creation of the Sarbanes-Oxley Act of 2002. This historic piece of legislation has had a profound effect on the accounting profession since it was signed into law. As a result of the act, the PCAOB was created. Since its inception, the PCAOB has created some of the most importing accounting standards that are used every day by auditors of public companies.
The Sarbanes-Oxley Act of 2002 As a result of massive accounting scandals in the United States between 2001 and 2002 involving notorious companies, such as Enron, Worldcom, Tyco, and various other recognized entities, President George W. Bush signed into legislation during 2002 the Sarbanes-Oxley Act of 2002 (hereinafter “SOX”) also known as the Public Company Accounting Reform and Investor Protection Act of 2002. According to Gelinas, Dull, and Wheeler (2012), these entities failed to enact and enforce proper governance processes throughout their organizations, and as a result, some employees boldly violated ethical codes, business rules, regulatory requirements, and statutory mandates, resulting in massive fraud. The employees of these companies were not serving God when they decided to violate the ethical codes and laws and commit fraud, they were in essence serving money. Luke 16:10-13 states, “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much. If then you have not been faithful in the unrighteous wealth, who will entrust to you the true riches? And if you have not been faithful in that which is another’s, who will give you that which is your own? No servant can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.” (ESV)
SOX was created to restore the public’s confidence in financial reporting of companies and includes some of the most significant laws the accounting profession has ever known. According to Gelinas et. al.: The key provisions of SOX are that SOX created a new accounting oversight board (the PCAOB), strengthened auditor independence rules, increased accountability of company officers and directors, mandated upper management to take responsibility for the company’s internal control structure, enhanced the quality of financial reporting, and put teeth into white-collar crime penalties. (2012, pg. 225)
Internal Control and Section 404 Internal control, according to Gelinas et. al., (2012), is a process – effected by an entity’s board of directors, management, and other personnel – designed to provide reasonable assurance regarding the achievement of objectives in the following categories: (1) the effectiveness and efficiency of operations;
Show More

Related Documents: Cox Research Paper

Gracie Cox Research Paper

Fifteen years ago, on September 8th, 2001, Gracie Cox was born. At 11:37 pm,she entered the world kicking and screaming. She was born in Paoli, Indiana to her proud parents, Johnny Cox and Monica Presley. Gracie has 3 siblings-Tristan, Tyler, Lerissa. When she was 10 months old, she learned how to walk. When Gracie was a toddler, she got car sick a lot. If she left in a car to go to her grandma’s, she got car sick. She was just getting used to have long drives and being in a car for hours at a time…

Words 737 - Pages 3

Lynne Cox Research Paper

history of America, Lynne Cox is a swimmer who had a noticeable contribution to improving relations between the United States and the Soviet Union. She is famous for tireless contribution for her ideal, overcoming her limitation to swim through horrify dark sea and presenting people’s dreams whose are separated family from two sides. There are three most important reasons to show why people found Lynne Cox’s success in swing across the Bering Strait so irresistible. First, Lynne Cox was pursuing determinedly…

Words 290 - Pages 2

Term Paper Effective Leadership

study seeks to examine the complex relationship between an employee and their leaders. The relationship between these two will be examined to better understand the impact management has on employee burnout. Some questions derived from the literature research are; How does the relationship with leaders contribute to employee burnout? Does the relationship with leadership affect employees mental or physical health? Is the solution to employee burnout: higher pay, job satisfaction or a combination of both…

Words 3241 - Pages 13

Animus: Behavior and Reduce Excessive Drinking Essay

Intervention Program to Reduce Excessive Drinking Project Proposal Paper written by University of Canberra Word Count: 1584 Abstract Alcohol has a complex place in Australian society; many Australians drink at high levels, and increased risk of alcohol related harm. Current addiction models suggest that alcohol- related stimuli will acquire incentive-motivational properties and increase cravings. This study investigated the efficacy of systematic desensitisation of alcohol-related cues on a…

Words 2179 - Pages 9

Essay on Markets: Marketing Decisions

According to Donald Cox and Robert Good, “An MIS may be defined as a set of procedures and methods for the regular, planned collection, analysis, and presentation of information for use in making marketing decisions. This of course is a step beyond logistics systems, which handle inventory control, orders, and so forth.” This definition of Marketing Information System (MIS) is referred from a 1937 classic paper titled “How to build a Marketing Information System,” written by Donald F. Cox and Robert E…

Words 406 - Pages 2

Newcomers: Education and Comprehensible Input Essay

A Newcomer’s Welcoming It could not have been expressed better than Cox & Boyd-Batstone (2009) when they stated, “We believe that all children – children who come to school already speaking English and those learning it as a new language – deserve the best that literature and teaching has to offer” (p. V). A central aim ought to be to enable students to discover and articulate their responses to literature, and such responses can only begin with the acknowledgment of creating meaning from text…

Words 1135 - Pages 5

Leeds United Essay

our money “ and she believes that lectures spend too much time pretending to do research and they are out of touch with reality. However Alison Taylor says that with the increase in fees she believes that the lectures will not be able to do research or write papers because they will be expected to spoon feed the students much quicker. For example she thinks that professor Brain Cox should be allowed to do his research slowly and carefully with the financial support he needs. 4) Alison Taylor…

Words 505 - Pages 3

Essay about The Rosemberg trial

he then provided evidence that led to the arrest of 22 local agents and 15 Soviet spies in Canada. After this information was given it lead to the British agency “M15” to interview Klaus Fuchs, head of the physics department of the British nuclear research centre at Harwell. Harwell was then arrested and charged with espionage. He then confessed that he had been working with the soviets since the Manhattan project during World War Two (WWII). Because of these confessions Klaus Fuchs was convicted for…

Words 1424 - Pages 6

Alcohol Abuse and Alcohol Dependence Treatment Essay

Case Study Assessment E. Mitchell Walden University Abstract The purpose of this paper is to inform the audience of the author’s ability to properly review case studies as related to evidence-based practice and search for published research that could guide the authors’ decision making. Keywords: research; assessment; alcohol; Hispanic Alcohol Dependence; Alcohol Treatment; Outcomes; Predictors; Residential Treatment; Self-Efficacy Case Study Assessment Francesco is a 30-year old Hispanic single…

Words 1341 - Pages 6

Apa Style Analysis

write a paper about APA, that is the format we will be writing our papers in for the rest of our student nursing careers as well as our professional careers. APA stand for American Psychological Association and is a style used cite sources within the social sciences. I will explain the general format of APA style, how to cite sources in text, how to compose a reference list, the stylistics of APA, and abbreviations of APA. (Angeli et al., 2010) Some of the general guideline of an APA paper is the…

Words 1879 - Pages 8