Berhampur 70918*19311 CALL GIRLS IN ESCORT SERVICE WE ARE PROVIDING
Flournoypresentation
1. What is the Sarbanes-Oxley Act of 2002 and why should business majors know it importance? By: Khaalis J. Flournoy Date: June 6, 2010 Instructor: Mrs. Owens
2. Summary This power point is to inform on the Sarbanes-Oxley Act of 2002. It gives insight on how it came about. Companies that it has affected. The Pros and Cons by debate. Includes why it is important to know about the SOX as known as the Sarbanes-Oxley Act of 2002.
3. What is the SOX’s? Sarbanes-Oxley Act of 2002 was signed July 2002 by president George W. Bush. It was made to regain the confidence in the shareholders that were affected by the companies that were committing fraud. It made companies have new regulations and rules.
5. WorldCom, Enron, and Tyco Later 2001 and early 2002 WorldCom, Enron and Tyco were the companies that released false information to the general public and their shareholders. The more revenue the company had the more shareholders they would receive, so the companies would overstate their financial statements.
6. Continued WorldCom was the first to fall and then the shareholders begun to wonder why. The company had just recent reported that they were growing but they only reported growth to get more shares in their company. The shareholders fought for the pensions and savings.
7. Continued WorldCom among many other companies were bought to justices. Although being in court WorldCom still tried to cover their trail. WorldCom paid their external auditors and accounting firms to destroy important files and the actual financial statements.
8. Continued Employees of WorldCom admitted that the Financial specialist and CEO’s told them to overstated the financial statements for more future profits. WorldCom could not win because of the Sarbanes-Oxley and how external auditors and accountants were finding all their reports and financial statement.
9. New rules and Regulations The Sarbanes-Oxley Act of 2002 made it mandatory to keep certain record pertaining to audits such as: Voicemails, emails, recorded personal phone calls, work with errors, letters, memos, notes, income statements, statement of owner equity, balance sheets, revenue, Journal entries, and net income.
10. Continued All of the new files under the Sarbanes-Oxley Act of 2002 must be kept for at least five years or more.
11. How the Sox has protected the General public? The general public has argued that the SOX’s has been a good help to know which company is the best company to invest with and if the company that you are investing with is reporting false information.
12. How the SOX has affected the small business owners? Some small and large companies has argued that following the SOX’s rules and regulations is very expensive it has become a burden for the small business owner. Most small business owners has reported that is to expensive to pay an internal auditor/accountant and an external auditor and accountant.
13. Who is penalized for false information? The larger companies compared to the WorldCom and Enron have complained that is not fair that everything that is reported from their company will be the responsibility of the CEO. If the company reports false information the CEO will be blame for the false information and the external auditors/accountants.
14. Basic Behaviors and Sentences The destruction or cover up of any records with the intent of obstructing a federal investigation. Fine and/or up to 10 years imprisonment. Failure to maintain audit or review “workpapers” for at least five years. Fine and/or up to 5 years imprisonment.
15. Who has to follow these rules? According to the Sarbanes-Oxley Act of 2002 the all the rules and regulation apply to any company that provides a service to the public and especially to companies that have shareholders and that is connected with stock trades nationally and internationally.
16. Conclusion The Sarbanes-Oxley Act of 2002 was made for the public. I was also made to regulate the companies that have shareholders and trading grounds. Some have argued that it is not fair and it is hurting the American financial world.
17. Work Cited www.washingtonpost.com Carl S. Warren, James M. Reeve, and Jonathan E. Duchac. Accounting and Finance 22E. Mason: Rob Dewey, 2007, 2005. Graphics: www.nysscpa.org How Sarbanes-Oxley has affected the Education of Accounting and Business related majors? www.crroconference.org www.financialforum.umb.edu The fall of WorldCom, Tyco, and Enron after the Sarbanes-Oxley. Feldman. Dorothy A. and William J. Read “Auditor Conservatism after Enron” Auditing 29.1 (2010):267-278 Business Source Complete, EBSCO, Web. 28 May 2010
