Sarbanes Oxley Act Essays (Examples)

Filter results by:

 

View Full Essay

Sarbanes-Oxley Impact on Auditing the

Words: 2046 Length: 5 Pages Document Type: Essay Paper #: 19087296

S. through even 2009. The exponential growth of Indian outsourcing companies who have expertise in Business Process Management (BPM) have correspondingly seen an increase in their business, as many smaller American publicly-held companies do not have the people or the expertise to get their processes, systems, it plans and accounting and reporting functions in compliance to the SOX standard in any meaningful period of time (adtke, et.al.) as a result many accounting professionals also must manage outsourcing contracts with companies who specialize in BPM and SOX process-redefinition. Finally there is also more concentration on oversight at the corporate level, with companies including Boeing having a Chief Compliance Officer who reports directly to the CEO to ensure GC Initiatives gain the necessary resources to be effective. Accounting and auditing will continue to be significantly influenced by SOX for the foreseeable future as the need for compliance grows.

Conclusion

The accounting and…… [Read More]

References

Ronald Jelinek, Kate Jelinek. "Auditors gone wild: The "other" problem in public accounting " Business Horizons 51.3 (2008): 223. ABI/INFORM Global. ProQuest. 14 Mar. 2009

Jeffrey E. Michelman, Bobby E. Waldrup. "Improving Internal Control Over Financial Reporting" the CPA Journal 78.4 (2008): 30-34. ABI/INFORM Global. ProQuest. 13 Mar. 2009

Robin R. Radtke.. "Role Morality in the Accounting Profession - How do we Compare to Physicians and Attorneys? " Journal of Business Ethics 79.3 (2008): 279-297. ABI/INFORM Global. ProQuest. 13 Mar. 2009

Sandra Waller Shelton, O. Ray Whittington. "The influence of the auditor's report on investors' evaluations after the Sarbanes-Oxley Act. " Managerial Auditing Journal 23.2 (2008): 142-160. ABI/INFORM Global. ProQuest 13 Mar. 2009
View Full Essay

Sarbanes-Oxley Examining the Real Cost

Words: 906 Length: 3 Pages Document Type: Essay Paper #: 29204959

2009).

Engle (2009) also notes that the costs of compliance in both monetary and human terms are greatly reduced by a willingness to embrace the regulation as a tool rather than shunning it as a "necessary evil." Though stating the obvious, he says what many in the business world simply couldn't bring themselves to hear just over a year ago, namely that "smart managers approach compliance before there is a problem that impacts the company and its stakeholders" (Engle 2009, p. 18). The issues at Bear Stearns and Lehman Brothers could have been prevented with regulation, but those at Enron and WorldCom were exacerbated by outright fraud, and the regulations provided by the Sarbanes-Oxley Act would have prevented such egregious mistreatment and mis-management of the company and its shareholders.

Strangely, the detection and prevention of fraud is not a benefit often perceived in the regulations of the Sarbanes-Oxley Act by…… [Read More]

References

Chang, H.; Choy, H.; Cooper, W.; Parker, B. & Ruefli, T. (2009). "Measuring productivity growth, technical progress, and efficiency changes of CPA firms prior to, and following the Sarbanes-Oxley Act." Socio-economic planning sciences 43(4), pp. 221-8.

Engle, P. (2009). "Making compliance effective." Industrial engineer 41(8), p. 8.

FEI. (2008). "FEI Survey: Average 2007 SOX Compliance Cost $1.7 Million." Financial Executives International. Accessed 25 September 2009. http://fei.mediaroom.com/index.php?s=43&item=204
View Full Essay

Sarbanes-Oxley and Why Did it

Words: 792 Length: 2 Pages Document Type: Essay Paper #: 40140978

5 million annually to comply with the law. The increases in spending (resulting in less spending in marketing and administration) for many energy companies will be in "security, grid reliability, and wholesale market operations" (Gartner, 2004).

The cost of providing the Securities and Exchange Commission with "two declarations" regarding internal financial controls certainly is significant; and those dollars take away revenue from other departments of utility companies, unless, a utility expects to just absorb additional costs. PriceaterhouseCoopers' (www.pwc.com p. 4) "Sustainable From the Start" document points to a company's duty under SOX to one, "state its responsibility for creating and maintaining adequate internal controls over financial reporting"; and two, issue an independent report as to whether the auditor agrees with management's conclusion (www.pwc.com p. 9) or not. Moreover, PC asserts that for some companies SOX has "tipped the emphasis the wrong way and forced companies to get stuck in process…… [Read More]

Works Cited

Cote, Bryan. (2008). Failed Audit? Preventing Failure -- while streamlining the audit

Process. Sarbanes-Oxley Compliance Journal. Retrieved May 8, 2009, from  http://www.s-ox.com/dsp_getFeaturesDetails.cfm?CID=2022 .

Gartner. (2004). Industry Research: Energy Utility Companies Weight in on Sarbanes-

Oxley and Disaster Recovery. Retrieved May 6, 2009, from http://www.sox.weblog.gartner.com.
View Full Essay

Sarbanes Oxley Rulemaking and Reports

Words: 1009 Length: 3 Pages Document Type: Essay Paper #: 86335483

Sarabanes-Oxley Act

Standard to most businesses is the idea that it is management's only responsibility in an organization to generate profits -- the best possible fiscal return for stakeholders. This template argues that the fiscal responsibility of the business is paramount, but that managers may not be the right level to handle a morally suspect global project. Additionally, focusing too farm on moral issues and too little on profit (Savage and McEltory, 2005). The entire purpose of doing business is to allow the organization to grow and evolve. Business would not flourish if there were no profitable advantages for both workers and the organization. A contrary view is called the "socio-economic" view of foreign trade. This view argues that organizations, who wish to compete and make a profit, must be amenable to societal changes. Simply looking at profit does not tell the entire story and is a rather myopic view…… [Read More]

REFERENCES

Commission Adopts Rules Strengthening Auditor Independence. (September 2003). U.S. Securities and Exchange Commission. Retrieved from:  http://www.sec.gov  / news/press/2003-9.htm

Corporate Conduct. (2002, July 31). Retrieved from The New York Times: http://query.nytimes.com/gst/fullpage.html?res=9C01E0D91E38F932A05754C0A9649C8B63

Bryce, Robert, (2002), Pipe Dreams: Greed, Ego, and the Death of Enron, Washington, DC: Public Affairs.

Bumiller, E. (2002, July 31). Corporate Conduct: The President. Retrieved July 2010, from The New York Times: http://www.nytimes.com/2002/07/31/business/corporate-conduct-the-president-bush-signs-bill-aimed-at-fraud-in-corporations.htmlPages / sec50.aspx
View Full Essay

Sarbanes Oxley Memo

Words: 683 Length: 2 Pages Document Type: Essay Paper #: 71162534

accounting discipline has taken a public relations beating over the past few years as a result of scandals in corporate accounting; much of this abuse has been well-deserved. Regulations regarding conflicts of interest, independent monitoring, reporting, and full disclosure to stockholders were thin at best, and in many cases were not enforced even when they did exist. The corporate accounting scandal wave changed that; public outcry for accountability resulted in Congress passing the Sarbanes-Oxley Act of 2002. This act contains many new regulations that have a profound effects on publicly traded companies, and that will directly affect this team and your corporation.

First, a quick summary of the actors involved: the FASB, or Financial Accounting Standards Board, and the Securities Exchange Commission, or SEC, have a mutually reciprocal relationship. The FASB issues standards regarding accounting standards which the SEC enforces; although the FASB is not an official government body (it…… [Read More]

View Full Essay

Impact of Sarbanes Oxley Legislation on it Organizations

Words: 467 Length: 1 Pages Document Type: Essay Paper #: 33153170

Sarbanes-Oxley legislation's effect on IT Companies

Public Company Accounting Reform and Investor Protection Act of 2002 (the Sarbanes-Oxley Act) was an attempt by regulators to increase transparency and accountability in business processes and corporate accounting to restore confidence in public markets. (Logan and Mogull, 2003) One optimistic article published in the wake of the 2002 Sarbanes-Oxley legislation stated that "new personal responsibility" for companies' financial accountability could benefit chief executive and financial officers by increasing trust and thus increasing revenue for corporate America in the long-term. (PR Newswire, 2002) But James O'Brien notes in his 2002 textbook on Management Information Systems, that the act was passed in the wake of the Enron scandal, not to help corporate America, but to protect the consumer.

Although spawned by an oil scandal, it affects all companies. The act was not specifically passed to regulate oil, IT or any specific companies in any specific…… [Read More]

Works Cited

Logan, Debra and Mogull, Rich. (October 2003) "Sarbanes-Oxley: Technology." Retrieved on October 7, 2004 at http://www3.gartner.com/DisplayDocument-doc_cd=117875

PR Newswire (2002) "Sarbanes-Oxley legislation can boot efficiency" Retrieved on October 7, 2004 at http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/08-30-2004/0002240594&EDATE=

O'Brien, James. (2004) Management information Systems: Managing Information Technology. Sixth Edition. New York: McGraw Hill.

Zrismick, Brian, et al. (2002) "Sarbanes-Oxley Affecting ERO/Financial Applications." Retrieved on October 7, 2004 at http://www3.gartner.com/DisplayDocument-doc_cd=117415
View Full Essay

Sarbanes-Oxley Legislation Pros and Cons Positive Effects

Words: 957 Length: 2 Pages Document Type: Essay Paper #: 16665245

Sarbanes-Oxley Legislation: Pros and Cons

Positive effects

According to some analysts, despite its costs, Sarbanes-Oxley legislation had some potential benefits for organizations: the additional documentation has amounted to a kind of enforced 'best practices' analysis. It "allows for complete documentation of processes identifying any gaps in a desired 'Best Practices' state" and offers an "opportunity to rethink old processes -- you may be using 10-year-old processes that don't offer your department maximum effectiveness in today's tax environment. Consider what can be done a better way? What have you been hoping to change, but haven't yet found the opportunity or reason to act?" (Guelker 2004). The 21st century frenzy of mergers and acquisitions which can make such best practices opaque to management in a highly bureaucratic organization make this even more pertinent -- leaders must have a clear idea of how organizations are managed to both prevent fraud allegations under SOX…… [Read More]

References

Beasley, M. & Hermanson, D. (2004).Going beyond Sarbanes-Oxley compliance: Five keys to creating value. CPA Journal. Retrieved from:

http://www.nysscpa.org/cpajournal/2004/604/perspectives/p11.htm

Coenen, T. (2010). Fraud files: How well does Sarbanes-Oxley reduce fraud risk? Daily

Finance. Retrieved from:  http://www.dailyfinance.com/2010/07/16/fraud-files-how-well-does-sarbanes-oxley-reduce-fraud-risk/
View Full Essay

Sarbanes-Oxley & Taxation Sarbanes-Oxley Scope

Words: 2770 Length: 10 Pages Document Type: Essay Paper #: 84188337

As one commentator has stated, the presence of two different sets of accounting rules, each plagued by imprecision and subject to multiple interpretations, gives corporations "two different bites at the apple." (6) What used to be seen as an economically advantageous distinction between tax and financial accounting may now be considered a "credibility gap." (7) (Whitaker, 2005, p. 680)

There have of coarse also been historical defenders of the book-tax gap who are concerned that if tax liability is to closely linked to reported financial statements, the corporate tax lobby might attempt to attack and dissolve the Financial Accounting Standards Board, which has been funded to a large degree and voluntarily by accounting firms and the business community. Sarbanes-Oxley attempted to eradicate this problem by developing a new funding structure, which replaced the old system by replacing these voluntary funds with mandatory fees gleaned from securities issuers.

As the staff…… [Read More]

References

Alexander, N., & Brody, L. (2003). Split-Dollar Redux: CPAs May Find the Benefits a Thing of the Past. Journal of Accountancy, 195(6), 95.

Carpenter, T.D., Fennema, M., Fretwell, P.Z., & Hillison, W. (2004). A Changing Corporate Culture: How Companies Are Adjusting to Sarbanes-Oxley. Journal of Accountancy, 197(3), 57.

Chambers, V., & Crowley, P. (2003). Capitalism and Accounting Reform. SAM Advanced Management Journal, 68(3), 44.

Dennis, a. (2004). Small Firms: Think Big! More Work at Large Firms Means More Opportunity for Smaller Ones. Journal of Accountancy, 197(6), 22.
View Full Essay

SOX Compliance How the Sarbanes-Oxley

Words: 574 Length: 2 Pages Document Type: Essay Paper #: 11110445

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 GC 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 change and the oversight function is seen as a threat to political power (Michelman, Waldrup, 2008). CEOs and the senior management team of an organization however must be in compliance to Section 302, Corporate esponsibility for Financial eports, which states they have audited and personally verify the accuracy of their financial statements (Bedard, Graham, Hoitash, Hoitash, 2007). Section 404 holds a company officer liable for the accuracy and veracity of the data on financial statement (Hemani, 2005).

Conclusion

SOX initially led…… [Read More]

References

Linda Devonish-Mills. (2007). Updates on XBRL and SOX. Strategic Finance, 88(8), 14-16.

Bashir Hemani. (2005). What is Sarbanes-Oxley, and What Does it Have to Do with Supply Chain Management? Journal of Validation Technology, 11(2), 134-143.

Bedard, J., Graham, L., Hoitash, R., & Hoitash, U.. (2007). Sarbanes-Oxley Section 404 and Internal Controls. The CPA Journal, 77(10), 34-37.

Michelman, J., & Waldrup, B.. (2008). Improving Internal Control Over Financial Reporting. The CPA Journal, 78(4), 30-34.
View Full Essay

Humana Inc And the Sarbanes-Oxley

Words: 629 Length: 2 Pages Document Type: Essay Paper #: 18548254

To improve security procedures, annual compliance training for all employees is mandated at Humana.

Humana has also been praised for its positive organizational attitude in adapting to HIPAA and SOX, although corporate officials acknowledged that some aspects of meeting regulatory goals were challenging. Still, compliance with both legislative acts has been portrayed by top management as 'good hygiene' in terms of patient security and accounting practices. There was none of the excessive hostility or secrecy sometimes seen when adapting to new regulatory challenges at other corporations (Fitzgerald, 2006, p.50). This attitude made all employees more willing to take such steps as memorizing rather than writing down passwords, which may have proved an irritant had not the organization stressed its necessity.

In fact, there is more overlap between Sarbanes-Oxley than might be immediately obvious, making Humana's experiences with both HIPAA and SOX equally illustrative. SOX was originally passed to limit off-book…… [Read More]

References

Beal, Barney. (2003, November 21). Seven steps to Sarbanes-Oxley compliance.

SearchCIO. Tech Target. Retrieved April 22, 2010 at tp://searchcio.techtarget.com/news/article/0,289142,sid182_gci938537,00.html

Fitzgerald, M. (2006, June). The art of compliance. CIO Insight. 69, 44-53.

Hurley, Edward. (2003, September 25). Security and Sarbanes-Oxley.
View Full Essay

SOX Act Slows Down Financing

Words: 921 Length: 3 Pages Document Type: Essay Paper #: 76202129

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 performance and material events including Section 404 of the Act (Sarbanes-Oxley Act, 2002) led to more oversight of just how bond debt instruments were structured and implemented over time (oubakri, Ghouma, 2008). The net effect of the SOX Act continues to be seen today with positive and negatives changes to corporate financing taking place, and they are analyzed in the following section.

Positive and Negative Changes to Corporate Financing from the SOX Act

The SOX Act was deliberately written…… [Read More]

Bibliography

Boubakri, N., & Ghouma, H. (2008). Managerial opportunism, cost of debt financing and regulation changes: Evidence from the sarbanes-oxley act adoption. Rochester: Social Science Research Network.

Engel, E.R. Hayes, and X. Wang. 2004. The Sarbanes-Oxley act and firms' going private decisions. Working paper. University of Chicago. May 2004.

Hagerty. AMR Research. Boston, MA. Thursday May 18, 2006.

Sarbanes-Oxley Act (2002) U.S. Senators Sarbanes and Oxley. Passed in 2002 by both U.S. House of Representatives and U.S. Senate.
View Full Essay

Regulatory Measures involving 1984 Sentencing Reform Act

Words: 1028 Length: 3 Pages Document Type: Essay Paper #: 12118758

Regulatory Measures
Events that led to implementation of various regulatory measures
The implementation of the 1984 Sentencing Reform Act called for the establishment of Federal Sentencing Guidelines for Organizations (FSGO). The United States Sentencing Commission decided to come up with these guidelines targeted at individuals and firms. The key aim was crime prevention and decreasing disparities in sentencing. (Mercer, 2003). At first, in the year 1991, the idea of organizational punishment mitigation was introduced, for cooperation and effective adherence to the program.
The 2002 federal regulation, SOX (Sarbanes-Oxley Act), put extensive financial and auditing related regulations in place for publicly-traded organizations. The chief goal was regulation of corporate practices like financial reporting at such corporations.
The Consumer Financial Protection Bureau (CFPB), instituted as part of the 2010 Consumer Protection Act and the Dodd-Frank Wall Street Reform, is responsible for the oversight of federal financial regulations expressly protecting consumers (i.e., individuals who store the money they own…… [Read More]

View Full Essay

Ethics and Law in Accounting Finance

Words: 917 Length: 3 Pages Document Type: Essay Paper #: 6791618

Sarbanes-Oxley Act of 2002 is will probably be known as one of the most significant change to federal securities laws in the United States since the New Deal. The act was passed after a series of corporate financial scandals made the national news, which included a slew of companies such as Enron, Arthur Andersen, and orldCom. The most notable provisions of the act include such items as both criminal and civil penalties for securities violations, a push for auditor independence from the corporation, requirements that guarantee certification of internal audit work by external auditors, and significant calls for increased disclosure regarding executive compensation, instances of insider trading as well expanding types of information that must appear on financial statements.

Even though the act may lessen the burden of the consequences of unethical acts that the public has to bear, all publicly traded companies now have to deal with the formidable…… [Read More]

Works Cited

Open Pro. (2011). OPENPRO AND SARBANES-OXLEY COMPLIANCE. Retrieved from Open Pro:  http://openpro.com/products_features_sox.html 

Pele-Sol. (2011). What is Business Process Automation. Retrieved from Pele-Sol Engineered: http://www.pele-sol.com/pele_factsheet_new.pdf

Solu Soft. (2009, January 13). Business Process Management. Retrieved from Solu Soft:  http://solu-soft.com/CompliancewithSarbanes.pdf
View Full Essay

Financial Regulations

Words: 908 Length: 3 Pages Document Type: Essay Paper #: 60390761

Dodd-Frank and Sarbanes-Oxley Acts are important legislations in the corporate world because of their link to public and privately held companies. Sarbanes-Oxley Act was enacted to enhance transparency and accountability in publicly traded companies. On the contrary, Dodd-Frank Act was enacted to disentangle the confused web of financial service company valuations. Actually, these valuations are usually hidden by complex and unclear financial instruments. The introduction of Sarbanes-Oxley Act was fueled by recent incidents of accounting frauds by top executives of major corporations such as Enron. In contrast, Dodd-Frank Act was enacted as a response to the tendency by banks, insurance companies, hedge funds, rating agencies, and accounting companies to serve up harmful offer of ruined assets and liabilities brought by systemic non-disclosure (Anand, 2011, p.1). While these regulations have some similarities and differences, they have a strong relationship with the financial markets.

elationship between the Acts and Financial Markets:

Since…… [Read More]

References:

Anand, S. (2011). Essentials of the Dodd-Frank Act. Hoboken, NJ: John Wiley & Sons, Inc.

Brink, A.G., Lowe, J. & Victoravich, L. (2013, August). The Effect of Evidence Strength and Internal Rewards on Intentions to Report Fraud in the Dodd-Frank Regulatory Environment. Auditing: A Journal of Practice & Theory, 32(3), 87-104.

Casey, K.L. (2011, January 23). Speech by SEC Commissioner: "The Regulatory Implementation

and Implications of Dodd-Frank." Retrieved from U.S. Securities and Exchange Commission website:  https://www.sec.gov/news/speech/2011/spch012311klc.htm
View Full Essay

Worldcom Prior to the Corporate Financial Scandal

Words: 1713 Length: 5 Pages Document Type: Essay Paper #: 1694636

WorldCom

Prior to the corporate financial scandal, WorldCom was one of the largest long distance telephone companies (euters, 2003). Initially headquartered in Mississippi it later moved to Virginia. The company grew fast by acquiring other companies such as MCI Communications in 1998 and UUNET technology in 1996. Other companies acquired included, Metromedia in 1992, esurgens Communications Group in 1993. In the course of this acquisition spree, WorldCom undertook two complex takeovers. The first was the 1998 acquisition of CompuServe from H& Block where it retained the network division, sold off the online service to American Online (AOL) and the second, the acquisition of Digex in 2001, and disposed of all Digex assets to Allegiance Telecom (Kaplan & Kiron, 2004). With these acquisitions, it gained a favorable reputation in the market as a company with a solid foundation.

Facts of the WorldCom Case

The WorldCom fraud case is one of the…… [Read More]

References

Kaplan, R.S., & Kiron, D. (2004). Accounting Fraud at WorldCom. HBS Premier Case Collection .

Reuters. (2003, April 14). WorldCom to emerge from collapse. Retrieved from www.cnn.com: http://edition.cnn.com/2003/Business/04/14/worldcom/

Ryerson, F. (2009). Improper Capitalization and The Management of Earnings. Las Vegas: Macon State College.

The Securities and Exchange Commission, 02 Civ. 3288 (United States District Court For the Southern District of New York June 26, 2002).
View Full Essay

Improvements in Integrity Financial Accountability Ethical Conduct

Words: 1568 Length: 5 Pages Document Type: Essay Paper #: 64221091

Improvements in Integrity, Financial Accountability, Ethical Conduct and Corporate Responsibilities under the Sarbanes-Oxley Act of 2002

e passed Sarbanes-Oxley in the wake of the Enron scandal to try to root out financial and accounting irregularities. How could similar irregularities occur at Lehman Brothers? History has a way of constantly repeating itself. -- Joseph Grant 2010

The high-profile corporate shenanigans by Enron and Lehman Brothers have made it clear that tough legislation was needed to compel Americans businesses to clean up their financial acts. Indeed, in response to Enron's late 2001 bankruptcy, Congress enacted the Sarbanes-Oxley Act of 2002 but the Lehman Brothers' bankruptcy in late 2008 made it clear that there was still a problem in some sectors of American business. This paper provides a review of the relevant literature to determine how the integrity of corporate finance, ethics, and other responsibilities have improved, what the corporate finance industry culture…… [Read More]

Works Cited

Bierstaker, James, Marshall, Kenneth K. And Greenwald, Jonathan. (2010, December).

"Strengthen Your Core: Are You Getting the Most from Your Compliance, Operations,

Risk, and Enterprise Support Functions?" Strategic Finance 92(6): 35-39.

Carter, Charles C. (2011, May 1). "Freefall: America, Free Markets, and the Sinking of the World Economy." Journal of Real Estate Literature 9(2): 492-499.
View Full Essay

Vose D 2008 Risk Analysis A Quantitative

Words: 1740 Length: 6 Pages Document Type: Essay Paper #: 74236692

Vose, D. (2008). Risk Analysis: A quantitative guide. (3rd ed.). West Sussex, England: John Wiley & Sons, Ltd.

he book is written on risk analysis using quantitative methodologies. he book has two parts and chapters are divided into these two parts. he first part is intended to help managers realize the rationale for conducting risk analysiswhereas the second part explains the modeling techniques of risk analysis. First part describes in detail the rationale for risk analysis, how to assess quality of risk analysis, and how to understand and use risks analysis results. Part two is based on use of statistical and mathematical processes to build risk analysis models. Correlation, dependencies, optimization in risk analysis, and checking as well as validating risk analysis model are the main important themes discussed in part two. he book adequately describes the risk analysis models and how best to use them, both in perspective of…… [Read More]

The article is aimed at discussing potential impact of sections of Sarbanes-Oxley Act of 2002 (SOX) that relate to information technology management by organizations. Section 404 has been specifically discussed that outlines the internal control assessments required of the firms. Securities and Exchange Commission (SEC) also requires publicly traded companies to comply with Treadway Commission's Committee of Sponsoring Organizations (COSO). The case of Motorola IT governance model is taken to demonstrate how compliance with SOX can be ensured for data and IT security by organizations. The article observes that SEC fails to provide specific guidance on IT security; rather it leaves room for interpretation by firms. There is brief mentioning of SOX acts that outline compliance related issues such as Sections 302, 404, 409, and 802 of SOX 2002. The article concludes with an observation that firms with least effective IT security made decisions related to IT governance at the level of business unit managers. Most effective firms in terms of IT governance made IT decisions by engaging three main stakeholders i.e. top management, business unit managers, and IT specialists.

Capelli, D., Moore, A. & Trzeciak, R. (2012).The CERT Guide to Insider Threats. Upper Saddle River, New Jersey: Pearson Education, Inc.

The book is written on the subject of 'insider attacks' related to abuse of information security in an organization. The book identifies and explains potential information technology (IT) system's vulnerability from insider sources of an organization such as employees,
View Full Essay

U S Banking Financial Sector Legislation in

Words: 2448 Length: 6 Pages Document Type: Essay Paper #: 73033002

190). The Act also helped to create a "too-big-to-fail" mindset (Walter, 2004) that would have profound implications during the economic downturn of 2008 and beyond.

6.

Why did you include this piece of legislation in your list? The Act is described by Sammin (2004) as being "the biggest revision in financial services law since the Great Depression" (p. 653).

iegle-Neal Interstate Banking and Branching Efficiency Act of 1994

1.

What were the problems/conditions giving rise to the legislation? apid consolidations among the nation's banks were creating the potential for diverting needed banking resources from communities (ose, 1997).

2.

What were the major provisions of the Act? The iegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (hereinafter "the Act") contained the following major provisions:

A. Bank holding companies that are adequately capitalized and managed can acquire a bank anywhere in the United States one year after this law is enacted.…… [Read More]

References

Alexander, K., Dhumale, R. & Eatwell, J. (2006). Global governance of financial systems: The international regulation of systemic risk. New York: Oxford University Press.

Coustan, H., Leinicke, L.M., Rexroad, W.M. & Ostrosky, J.A. (2004). Sarbanes-Oxley: What it means to the marketplace; from support to apprehension, accounting professionals express their thoughts. Journal of Accountancy, 197(2), 43-44.

Feinberg, R.M. & Reynolds, K.M. (2010). An examination of entry and competitive performance in rural banking markets. Southern Economic Journal, 76(3), 624-625.

Gup, B.E. (2003). The future of banking. Westport, CT: Quorum Books.
View Full Essay

Accounting Industry Has Been Facing Increasing Amounts

Words: 622 Length: 2 Pages Document Type: Essay Paper #: 72068034

accounting industry has been facing increasing amounts of scrutiny. This is because a number of high profile scandals (i.e. Enron and World Com) were brought to attention of regulators (based upon the need for increasing oversight in this area). As a result, the Sarbanes-Oxley Act of 2002 was implemented. However, since this law was first enforced, a number of firms are claiming that its restrictions are an added burden (for large multinational corporations). This is creating situations where individuals could still engage in unethical practices. To fully understand what is happening requires looking at potential conflicts. Once this takes place, is when it will highlight the impact of these activities on firms.

The Effect of Sarbanes-Oxley on Financial Statements

The effect of Sarbanes-Oxley on financial statements is that it is forcing firms to provided added disclosures to investors. This occurs with the CEO and CFO certifying under oath that the…… [Read More]

References

Sarbanes-Oxley Act 2002. (2006). SOX Law. Retrieved from:  http://www.soxlaw.com /

Frankel, A. (2012). Wal Mar's Sarbanes-Oxley Problem. Reuters. Retrieved from: http://www.reuters.com/article/2012/04/23/us-frankel-walmart-idUSBRE83M1GQ20120423
View Full Essay

Regulate Competition Case Analysis Report

Words: 958 Length: 3 Pages Document Type: Essay Paper #: 56780034



6.

Company members falsifying, altering, destroying or otherwise tempering with organizational documents risk punishments between fines up to 20 years imprisonment

7.

Organizational staff members notifying their superiors or the legal authorities of fraudulent operations are protected under the whistleblower protection provision. People who retaliate against the individuals who offer condemning information of the company are punished with anything between a fine up to ten years imprisonment (Prahalad, 2008).

As an addition to these provisions, it is automatically implied that the auditor will keep an objective opinion and will perform his tasks within the highest standards of professional quality. Yet, since it is possible for the auditor to have shares in the respective organization, have a child employed there or other such situations, he is asked to identify the existence of any conflicts of interest and withdraw from the audit process.

At a first level, the Sarbanes-Oxley act was expected…… [Read More]

References:

Donaldson, W.H., 2005, Testimony Concerning the Impact of the Sarbanes-Oxley Act, Securities and Exchange Commission,  http://www.sec.gov /news/testimony/ts042105whd.htm last accessed on May 20, 2010

Fass, a., 2003, One Year Later, the Impact of Sarbanes-Oxley, Forbes,  http://www.forbes.com/2003/07/22/cz_af_0722sarbanes.html  last accessed on May 20, 2010

Prahalad, a., 2008, Key Provisions of the Sarbanes-Oxley Act, Articles Base,  http://www.articlesbase.com/online-business-articles/key-provisions-of-the-sarbanes-oxley-act-509714.html  last accessed on May 20, 2010

2006, the Sarbanes-Oxley Act, Sox Law,  http://www.soxlaw.com  / last accessed on May 20, 2010
View Full Essay

Ethics and Accounting - Financial Decision-Making Ethics

Words: 1093 Length: 3 Pages Document Type: Essay Paper #: 77157584

Ethics and Accounting - Financial Decision-Making

Ethics in Accounting and Financial Decision Making

The article Ethical guidance and constraints under the Sarbanes-Oxley Act of 2002 by .M. Orin (2008), espouses the belief that the Sarbanes-Oxley Act did not go far enough in its desire to stop unethical financial practices by businesses. The article addresses what the Act actually does, which is to help companies practice more due diligence and lessen the chances of getting involved in unethical financial practices. The Sarbanes-Oxley Act involves important legal issues. The due diligence is one of those issues, but another is the need for accountants and lawyers to report the corporations they work with for wrongdoing if they see or suspect a serious financial issue (Coffee, 2002). This has been a concern for some because it technically compromises the attorney-client privilege. This was necessary, though, in the face of all of the corporate scandals…… [Read More]

References

Coffee, J.C. Jr. (2002, September). Leading issues under Sarbanes-Oxley, Part 1, New York Law Journal: 5.

Koehn, J.L. & Del Vecchio, S.C. (2004, February). Ripple effects of the Sarbanes-Oxley Act. The CPA Journal: 36-40.

Orin, R.M. (2008). Ethical guidance and constraints under the Sarbanes-Oxley Act of 2002. Journal of Accounting Auditing and Finance: 141-171.
View Full Essay

Key Characteristics of a Whistleblower

Words: 955 Length: 3 Pages Document Type: Essay Paper #: 14675599

Whistleblowing

In definition, a whistleblower can be an employee or a former employee of a corporation who provides proof and evidence that substantiates the fraudulence and ethical behavior within the entity or activities that are not in the best interests of the general public or stakeholders. Customarily, whistleblowers reveal classified data and information concerning their workplace, which is in violation of the laws and regulations in place, and also that can be disparaging to the well-being of the employees. Whistleblowers have various characteristics. One of the key individualities of whistleblowers is credibility. A whistleblower has to have the character of being trusted, depended upon and have integrity. This is because the information provided by the whistleblower has to be truthful and reliable. Another characteristic of a whistleblower is believing in their behavior and being in changing their beliefs. A whistleblower should maintain their stance in being honest about the fraudulent…… [Read More]

View Full Essay

Business People Study Ethics What Are the

Words: 2431 Length: 8 Pages Document Type: Essay Paper #: 33452697

business people study ethics. What are the possible benefits to companies, individuals, society and the world of business?

According to a gallop poll administered by the Better Business Bureau in 2008, consumer trust in business professionals is on the decline. Of the consumer populous polled, only 42% expressed trust in banks and financial institutions, representing a 6% decline in trust since 2007, while only 24% responded positively toward contractors and service professionals, representing a decline in trust of 4%. Of the 14 industries polled, trust was lowest in real estate brokers and auto dealers, with a positive trust response of only 13%, representing a 3% decline in trust (Farrell, Fraedrich and Farrell, 2009). In particular, trust levels declined rapidly as a result of public scandals which "cost many companies their emotional appeal, the strongest driver of reputation" (Ferrell et al., 2009).

According to ethics professor Rick Garlikov, the reputation of…… [Read More]

Kohlberg's model of ethical development varies from previous models insofar as development is not the product of maturation or socialization alone, but rather the product of one's cognitive contemplation of moral problems (Cain, 1985). Kohlberg's model coincides with character development specialist Thomas I. White's assertion that ethical character development is the result of ethical reasoning as opposed to a focus on "being a good person" (Ferrell et al., 2009). Studying ethics and contemplating ethical frameworks, therefore, is imperative to the development of an ethical character and the ability make ethically informed decisions.

Crain, W.C. (1985). Theories of Development. Prentice-Hall. pp. 118-136. Retrieved Jan. 31, 2011 from http://faculty.plts.edu/gpence/html/kohlberg.htm

Ferrell, O.C., Fraedrich, J. & Ferrell, L. (2009). Business ethics: ethical decision making and cases. (7th ed.) Mason: South-Western Cenage Learning.
View Full Essay

Insider Trading Legal and Ethical

Words: 2839 Length: 8 Pages Document Type: Essay Paper #: 69554789

Even if he hints around in a non-direct way that his friends should sell their stock without coming out and saying it, he may be guilty of insider trading because the information on the merger has not yet been made known to the public.

This is unethical and what the corporate officer should steer the conversation in a different direction and if his friends insist on continuing to ask questions he should firmly, but politely tell them he is not allowed to discuss personal company information with them.

Likewise, an employee has a certain amount of fiduciary responsibility if he knows that there are fraudulent practices happening at the corporation. If the employee knows that there is insider trading or if he knows that the accounting practices the corporation is using are dishonest, then he has an obligation to report what he knows. Some employees, especially if they do not…… [Read More]

Bibliography

Hoffman, Drew, "Martha Stewart's Insider Trading Case: A Practical Application Rule of 2.1," The Georgetown Journal of Legal Ethics 20, no. 3, (2007): 707-717.

James, Randy, "A Brief History of Insider Trading," Time, November 9, 2009. http://www.time.com/time/business/article/0,8599,1936562,00.html (accessed August 9, 2010).

Jennings, Marianne, "The Lessons from Galleon Hedge Fund and the Insider Trading Ring," Corporate Finance Review 14, no. 5, (2010): 43-46.

Khan, Walayet A. And Asjeet S. Lamba, "The Effectiveness of Legal Sanctions in Curtailing