Sarbanes-Oxley Act Case Study

Words: 775
Pages: 4
Open Document
The three sections of the Sarbanes-Oxley Act I chose are Sections 302, 406 and 802. Section 302 requires a company to ensure that financial statements have been reviewed by them and are accurate. Section 406 ensures that the company in question has adopted a code of ethics for the chief financial officers. Section 802 states that a company cannot destroy or falsify any documents that would impede a government investigation.
Section 302 promotes ethical behavior by Verizon by ensuring that they have a strong financial department that will ensure the statements are entered correctly and have a system for them to be reviewed for accuracy. This will ensure that the stakeholders are aware of Verizon’s financial status and can have confidence that it is accurate. Section 406 promotes ethical behavior by having a code of ethics in place to keep the chief financial officers from making improper decisions. This will protect stakeholders by ensuring the chief financial officers make ethical decisions and decisions that will benefit the company and not just themselves. Section 802 promotes ethical behavior by making sure that Verizon doesn’t manipulate any investigation which would give …show more content…
Also, it states that a company can have its fines reduced by up to 95 % if they can show that they have an effective compliance program in place and gives the criteria needed for having this. Lastly, it gives some examples of agencies that modeled using the sentencing guidelines. This promotes ethical behavior for Verizon by showing them the path to achieve the compliance needed to avoid fines, etc. Stakeholders are protected because this should increase the probability of the company having an effective compliance program. This should help employees keep their jobs and shareholders to avoid having to worry about the company paying
Show More

Related Documents: Sarbanes-Oxley Act Case Study

Case Study Of The Sarbanes-Oxley Act

Dear LJB Company President: If LJB Company wants to go public in the future, they must comply with the Sarbanes-Oxley Act (SOX). “Under SOX, all publicly traded U.S. corporations are required to maintain an adequate system of internal control” (Kimmel, WEygandy, & Kieso, p. 337 2013). Internal controls are the methods and measures that need to be followed in the organization to protect assets and increase efficiency (Kimmel, WEygandy, & Kieso, 2013). There are five components of internal controls:…

Words 412 - Pages 2

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

The Sarbanes-Oxley Act: An Ethical Perspective

The Sarbanes-Oxley Act: An Ethical Perspective Presented By: • Karroll Candelaria-Bauer • Jorge Garcia • Corina Gonzales • Marisa Sanchez • Matthew Wylie November 22, 2014 Sarbanes-Oxley Act: An Ethical Perspective Contents Introduction.......................................................................................2 The Provisions....................................................................................5 The Value in Context .................................................…

Words 8824 - Pages 36

Trends Established By The Sarbanes-Oxley Act Of 2002

Trends Established By The Sarbanes-Oxley Act Ashley E. Guzman Corporate Financial Management Class Meeting Dates: Tuesdays, 6:00p.m. Abstract The Sarbanes Oxley Act of 2002 was enacted in reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals cost…

Words 2685 - Pages 11

Essay about The Sarbanes-Oxley Act: Regulating Financial Practices of Businesses in the U.S.

Sarbanes-Oxley Act Paper Johnny Leng ACC/290 August 18, 2014 James Gardner Sarbanes-Oxley Act Paper The Sarbanes-Oxley (SOX) Act was enacted by legislation in 2002 to regulate the financial practice of businesses within the United States. During the time that it was passed, many large corporations were being scrutinized for their business practices and accounting scandals. Most notably, these corporations include Enron, Tyco International, and WorldCom among others. The scandals cost investors billions…

Words 416 - Pages 2

Essay on Internal Control and publically Traded Companies

Effects of Sarbanes-Oxley Act on Corporate Governance Group #1: Gibriella Conteh Michelle Green Phoenix Phimmasene Octavia Singleton AMBA 630 – The Economics of Management Decisions Professor Little and Professor Riley February 17, 2015 The Sarbanes-Oxley Act was implemented in response to a number of financial scandals that took place in the early 2000s. These scandals included Enron, Tyco & WorldCom, all of which made investors nervous. This Act was drafted by Paul Sarbanes and Michael…

Words 2519 - Pages 11

Essay about Assignment: Internal Control and Fraud

Wang Q1 A whistle-blower is a member of an organization who unravels illegal, unethical or illegitimate misconduct under the control of their employers to other person or organizations that may be able to take an effective action on it. Given in this case, Cynthia Cooper, who worker as Vice President of internal audit for Worldcom, a leading telecommunications company built from over 70 acquisitions, unraveled the accounting manipulations where the key aspect is that corporate accounting team used creative…

Words 3042 - Pages 13

Whistleblower 2 Essay

Whistleblowing and Sarbanes-Oxley Tina-Marie Cole Law, Ethics, and Corporate Governance LEG 500 - Lecture Course Prof. Lisa M. Morris January 20, 2015 Whistleblowing and Sarbanes-Oxley Trinity Industries, or TRN (NYSE), manufactures roadway guardrails, which are a highway public safety feature. In 2005, TRN changed its rail head design saving the company two dollars per rail head but failed to notify the Federal Highway Administration which is required by a federal ruling…

Words 1267 - Pages 6

BALANCE IT GOVERNANCE & NEEDS AGAINST THE BACKDROP OF SOX & BSA REGS Essay

BALANCE IT GOVERNANCE & NEEDS AGAINST THE BACKDROP OF SOX & BSA REGS. James B. Kirk CASE ASSIGNMENT #3 ITM524 Introduction and Organizations as Socio-technical Systems Dr. Mina Richards 31st August, 2013 Image 1 I. INTRODUCTION Research show the top–performing companies generate returns on their IT investments up to 40% greater than their competitors. The top-performing companies proactively seek value from…

Words 1287 - Pages 6

Essay about Memo to Congress

huge case brought in many ideas to reform business ethics, though we still see many problems in todays economy. There is no one policy with one quick change that will fix ethics but there is reform to corporate ethics in America that will help. To understand better the changes that need to be made to business ethics it is important that everyone knows exactly what business ethics is. It all starts with the simple definition of ethics; ethics is in business and in life. Ethics is “the study of…

Words 2390 - Pages 10