SOX Impact on Corporate Financial Reporting The Sarbanes-Oxley Act of 2002 (SOX) led to widespread changes in how governance, risk, compliance, financial reporting and decision-making are managed in publically-held coproratio9ns today. Experts in the field of governance and compliance have concluded that the SOX Act immediately redefined the scope of financial reporting and risk definition (Hagerty, 2006). This was especially prevalent in the bond markets, where forcing greater disclosure of financial

Corporate Governance: A review of Literature What is Corporate Governance? Principles of Corporate Governance Theoretical foundations of corporate governance Agency theory Stewardship theory Stakeholder theory Post-Enron theories Corporate Governance: The changing trends Recent developments on regulatory front and research Corporate Governance: Relationship with market indicators Venture Capital Model: Impact on Corporate Governance Appendix I- Examples of Corporate Governing bodies This paper is a review of pertinent literature on corporate governance. Corporate governance addresses the control issues created due to the separation of ownership

The amount and complexity of information created and overseen by the auditors in terms of expenses, earnings, and taxes will also increase. The ongoing growth of global organizations is also demanding greater auditing expertise concerning international laws and trade in addition to international mergers and acquisitions. Following Enron and the other financial scandals, Congress passed laws to curtail organizational accounting fraud. This legislation requires public companies to maintain established internal

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

Corporate Social Responsibility, Ethics, And Business Law: The Fall of Enron and the Discussion of Morals in Business Ethics in business has continued to be a growing concern in the twenty-first century. In order to protect and attract stakeholders, companies have enforced social responsibility, while law has protected and ensured security to stakeholders through the passing of laws. Despite corporate social responsibility and federal law, individuals in some businesses still find means

Unifying all compliance strategies throughout a business and placing internal auditors in the position of managing variations in processes and reporting results has emerged as a critical success factor for GRC strategies (Michelman, Waldrup, 2008). The businesses that are minimizing the disruption of SOX-related it, process and strategy changes have successfully implemented internal auditing oversight programs. This aspect of internal controls is struggling in some businesses as resistance to