The Sarbanes-Oxley Act

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Sarbanes-Oxley Act (SOX Act) of 2002 Article
Need for Establishment
The Sarbanes-Oxley Act was passed as an answer to and in response to a large-scale occurrence of corporate scandals. Most notably were the doctored financial reports of large companies like Enron, Tyco, and WorldCom in which many questionable business transactions that resulted in massive stakeholder losses and shattered investor confidence ensued.
The Sarbanes-Oxley Act Intent
The acts primary intent is to protect businesses and investors through ensuring accurate and reliable reporting of corporate disclosures in accordance to established laws. Sarbanes-Oxley established new and revised standards to hold corporations accountable, and defined penalties for wrongful actions. …show more content…
Non-Compliance
Penalties for non-compliance can range in loss of insurance, privileges, fines, and prison time to be served. Willfully submitting falsified certifications by a CEO or CFO can result in fines amounting to up to $5 million dollars and prison terms of twenty years.
Ethics
The Sarbanes-Oxley Act under section 406 defines ethical code for senior financial personnel. The Sarbanes-Oxley Act defines a code of ethics that establishes guidelines and requirements that will promote "honest and ethical conduct; fair, timely, and truly understandable disclosure within required reporting, and complete governmental regulation and regulation compliance. Changes to ethical codes require prompt public disclosure.
Criminal Penalties
The Sarbanes-Oxley Act under Section 802 levies large fines and terms of imprisonment for as long as 20 for securities violations. These penalties can be against firms, its senior management, and anyone else involved in knowingly altering, concealing, destroying, or falsification of records intending to hinder legal …show more content…
“My only thought and this is purely speculative is that they looked for a comfortable excuse not to look into these issues, and they are important issues. We raise very serious allegations about whether Sen. Harry Reid was inappropriately inserting himself into the USCIS process for approving EB-5 visas and if that was true this guy should be investigated and properly
Thoughts on Article
This article not only raises the subject of ethics but also details an example of how money and power can influence others to disregard their own ethical standards and rules in an effort for their own personal agendas and gains. Way too many ethical breaches between Senator Reid and specifically his son’s law firm that represents the SLS Casino whom stands to gain for the foreign investment
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