Sarbanes-Oxley Act Essay

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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 accounting procedures. In short, the SOA controls and standardizes financial processes as well as corporate authority. With the enactment of Sarbanes-Oxley, numerous changes were made to auditing procedures that were not used beforehand. These changes include the start and introduction of risk management pertaining to …show more content…
In addition to this finding, it has been discovered that exterior audit fees, compliance expenditures and scrutiny are ever-increasing. The reason for this increase is attributed to the nature of dynamic compliances. As a result, corporations are searching for avenues in order to attain more value because of their compliance actions. This in itself has shifted to an added concentration towards the methods and means that boards carry out their obligations while auditing committees are charged with more authority and accountability. For example, internal controls are required to be reported. These or any such accounts of wrongdoing are not only to be documented in a report but it must be reported to the SEC and those that are offenders may be fined or possibly tender their

Sarbanes Oxley Act Essay

main objective of this research topic is to gain insight in unethical accounting practice that has occurred in corporations such as Enron. Also, to examine factors that is linked to unethical behavour and professionalism. Lastly, what remedies and acts have been established to prevent these unethical behaviours from occurring again. Methodology and Sampling Secondary sources such as credible journals and books will be used in order to have accurate information. Individuals who have experienced…

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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…

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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…

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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…

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Essay on Sarbanes Oxley Act Of 2002

sign in to law the Sarbanes-Oxley Act of 2002. This paper will attempt to describe the regulatory aspects of the SOX Act and how is supposed to protect the public from fraud within corporations. Sarbanes-Oxley Act of 2002 In the aftermath of the financial crisis of Enron, Tyco International, Adelphia, Peregrine Systems, and WorldCom, in an attempt to restore investor’s US Congress approved on July 2002 the Sarbanes Oxley Act (Slaughter 2009). Sarbanes-Oxley Act of 2002 brought with…

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Sarbanes-Oxley Act of 2002 Essay example

audit firm. The United States began to intervene in audit activities through the issuance of the Sarbanes-Oxley. Sarbanes-Oxley Act 2002 was approved by Congress on July 30th. 2002 in order to improve the quality and transparency of financial reporting, greater accountability of the Board, Board of Directors and auditors. Apart from some provisions relating to the independence of auditors, Sarbanes-Oxley Act also allows the Committee supervising the accounting and auditing of listed companies (PCAOB)…

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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…

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Business: U. s. Securities and Exchange Commission and Sarbanes Oxley Act Essay example

Assignment 5: Sarbanes Oxley Act of 2002 Instructor: Bradley Johnson BUS 592: Financial Accounting & Analysis May 20, 2013 Abstract summary: The Sarbanes Oxley Act of 2002 which was enacted into law based on the recent scandals of a major companies who reported falsified accounting, understating expenses, overstating assets or understating liabilities, use of fictitious and fraudulent transactions and direct falsification of financial statements to give a…

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Essay on Internal Controls

student at University of Phoenix if there are any questions or concerns about this essay you may contact her at audrey32685@email.phoenix.edu INTERNAL CONTROLS 2. Abstract In this essay you will find an introduction to internal controls. What internal controls are and how internal control systems work in accounting. Also as you continue to read you will find out how the Sarbanes - Oxley Act of 2002 has affected the internal control systems in many businesses. Also some…

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