Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
One critical area is with respect to board oversight. The Act mandated that the boards contain enough external members in order to function with relative independence from management. Board members must be sufficiently competent to detect fraud. This means that some board members should have functional competence in the areas in which the company operates while other board members should have significant financial expertise to detect suspicious transactions. Improving governance at the director level is critical to improving governance overall (Guerra, 2004)
Another area where improvement is needed is with respect to auditors and analysts. Public accounting firms had taken the attitude that auditing was an ancillary function to their consulting businesses, creating a conflict of interest. This conflict is to be eliminated, where firms are not to engage in consulting business with the companies that they audit. Analysts must have firewalls between them and the...
It is not sufficient to simply write codes about governance, it is necessary to have a culture that supports ethical, responsible behavior. This means removing incentives for unethical behavior and emphasizing ethical, responsible behavior in corporate communications. Companies need to ensure that the precursors for such behavior are eliminated, and not leave it to the auditors, directors and executives to uncover impropriety.
Works Cited:
SOX Law website, various pages. (2003). Retrieved April 16, 2010 from http://www.soxlaw.com/s401.htm
Guerra, J. (2004). The Sarbanes-Oxley Act and the evolution of corporate governance. CPA Journal. Retrieved April 16, 2010 from http://www.nysscpa.org/cpajournal/2004/304/perspectives/nv5.htm
Works Cited:
SOX Law website, various pages. (2003). Retrieved April 16, 2010 from http://www.soxlaw.com/s401.htm
Guerra, J. (2004). The Sarbanes-Oxley Act and the evolution of corporate governance. CPA Journal. Retrieved April 16, 2010 from http://www.nysscpa.org/cpajournal/2004/304/perspectives/nv5.htm
Sarbanes-Oxley Act (SOA) was put into law in 2002 following the revelations that Enron (and Enron's accountancy Arthur Anderson), WorldCom, and other corporations were using blatantly corrupt practices in accounting and causing huge losses for stakeholders in those firms. Moreover, the U.S. Congress could not simply stand by and allow companies to use unethical and illegal practices to scam huge sums of money for corporate executives while stripping the IRAs
Sarbanes-Oxley Act The objective of this study is to read the guide to the Sarbanes-Oxley Act and to: (1) Evaluate the effectiveness of regulations such as Sarbanes-Oxley Act over minimizing the corporate fraud and protecting investors make one suggestion for improvement; (2) Given the oversight of the accounting profession by the PCAOB as a result of the Sarbanes-Oxley Act, assess the impact on auditing firms and the public accounting professions; (3)
SOX The Sarbanes-Oxley Act (SOX) was passed in 2002 as a response to a wave of corporate accounting scandals. To measure the effectiveness of SOX over the past ten years, the objectives of the Act must be understood. The text of the Act states that its purpose is "to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes." The
The investors got intoxicated by fraud happened to them because of greedy people. Thousands of employees left as the stock market went to the peak but most of them left their jobs due to low pay as well. (Kerry Hannon, July 6, 2005) bill was passed by the President Bush after the corporate fraud nearly just after three weeks on April 25, 2002. It referred to the Senate Banking
Literature on the Sarbanes-Oxley Act of 2002 The field of specialized literary reviews on the Sarbanes-Oxley Act is a widely spread one presenting numerous issues form various standpoints. Reviewers' opinions vary based on their position towards the bill and their prior professional expertise on white-collar crimes. Among the mostly appreciated and close to reality works are: The Impact of Regulatory Information Disclosure on Information Security Investments, Competition and Social Welfare by
The integrity of the financial sector of these organizations controlled by state agencies and related services, would improve. The provisions offered by the act would serve as models based on which standards for other non-profit organizations can be developed in the future. It will create a better understanding of the limitations placed on auditors and a deeper scrutiny of the financial and transaction statements presented by the auditors. While