Sarbanes-Oxley Act (SOX) Essays

Sarbanes-Oxley Act (SOX) Essays
Introduction
In July of 2002, Congress swiftly passed the Public Company Accounting Reform and Investors
Protection Act at the time when corporations like Arthur Anderson, Enron and WorldCom fell due to
fraudulent accounting practices and bad internal control. This bill, sponsored by Mike Oxley (R–
OH) and Paul Sarbanes (D–MD), became known as Sarbanes–Oxley Act (SOX).It sought to restore
public confidence in publicly traded companies and their accounting practices, though the
companies listed above were prosecuted on laws that were already in place before SOX. Many
studies have examined the effects of SOX on corporations in the past eleven years. The benefits are
hard to quantify and the cost are rather hard to estimate including the ... Show more content on
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In terms of increasing independent directors in corporate governance, SOX directed the Securities
and Exchange Commission (SEC) to adopt rules that prohibit listings of companies that did not have
an audit committee. The audit committee must consist of independent directors, and if the
committee is in place but did not have enough independent directors, it must add more independent
directors to the board. In addition, at least one of the directors must be a financial expert as defined
by the SEC.
As for the liability of officers and directors, SOX expanded the scope of their legal obligation by
increasing penalties for violating securities law and creating new crimes for certain acts which
included securities fraud, obstruction of justice, and false certification of financial statements. This
part of the SOX act actually modified the current laws that had been in place by increasing the
penalties associated with civil and criminal violation of securities law. It also requires that all
compensation in terms of bonus or incentive–based compensation and profit that is earned by
executive officers be returned to the company if these laws are violated.
To increase the disclosure requirement of publicly traded firms, the SEC requires that firms with a
market value of $75 million or have to include a management assessment on the effectiveness of
... Get more on HelpWriting.net ...

Sarbanes-Oxley Act Essay
The Sarbanes–Oxley Act (SOX) was passed by Congress in 2002 as a response to large corporate
accounting fraud scandals that resulted from blatant abuse of self–regulation. SOX "is the most far–
reaching and significant new federal regulatory statute affecting accountants and governance since
the Securities Acts of 1933 and 1934" (Wegman, 2007). The main goal of SOX was to protect
investors from fraud by strengthening oversight and improving internal control. In the discussion
below are the advantages and disadvantages of SOX as well as an opinion regarding how successful,
or unsuccessful, the SOX regulations were for the prevention of fraud and protection of small
business. Advantages of SOX One of the advantages of SOX was the improvement on and
expansion of corporate disclosures, including but not limited to, audit committee independence, off–
balance assets and liabilities and any commitments or contingencies (Akhigbe & Martin, 2005).
Prior to SOX public companies could manipulate their financial statements to, among other things,
increase the value of their stock. The additional disclosure requirements resulted in greater
transparency of financial statements and shareholders would now have information deemed
necessary ... Show more content on Helpwriting.net ...
During testimony to the Small Business Committee it was said that the cost exceeded what Congress
ever intended and had outweighed the benefit expected to shareholders and management (Iliev,
2010). The growth of small business is a prominent national interest and an important part of the
economy but the regulations are not able to protect investors and simultaneously encourage their
growth (Castelluccio, 2005). Fortunately, there have been subsequent laws passed that reduce
standards as well as offer opportunities for exemption to certain regulations which offers some relief
but not

Sarbanes Oxley Act and the PCAOB Essay
The Sarbanes–Oxley Act Overview:
The development of the Sarbanes–Oxley Act (SOX) was a result of public company scandals. The
Enron and Worldcom scandals, for example, helped investor confidence in entities traded on the
public markets weaken during 2001 and 2002. Congress was quick to respond to the political crisis
and "enacted the Sarbanes–Oxley Act of 2002, which was signed into law by President Bush on July
30" (Edward Jones, 1), to restore investor confidence. In reference to SOX, penalties would be
issued to non–ethical or non–law–abiding public companies and their executives, directors, auditors,
attorneys, and securities analysts (1). SOX significantly transformed the procedures in which public
companies handle internal ... Show more content on Helpwriting.net ...
Title I: Public Company Accounting Oversight Board: The PCAOB gives a new meaning to the
public accounting industry. The board must be composed of five members, appointed for a 5–year
term, two of which are Certified Public Accountants (CPAs) or have previously been CPAs, and
three of which have never been CPAs. The chair of the PCAOB may be a CPA, but only if he has
been out of practice for at least five years. "The members must be independent of the accounting
profession as no member may, concurrent with service on the board, share in any of the profits of, or
receive payments from, a public accounting firm, other than fixed payment such as retirement
payments" (4). All members of the PCAOB must be appointed by the Securities and Exchange
Commission (SEC). The board performs various jobs which include: "oversee the audit of public
companies, establish audit report standards and rules, inspect, investigate and enforce compliance on
the part of registered public accounting firms and those associated with the firms" (4). Not only do
public accounting firms who audit the financial reports of public companies have to register with the
PCAOB, but foreign public accounting firms must register as well. The standards of auditing
include:
A seven–year retention period for audits work papers, second partner review and approval,
evaluation of whether internal control structure and procedures include records that accurately
reflect transactions and dispositions of

Summary Of The Sarbanes-Oxley Act Of 2002
The Sarbanes–Oxley Act of 2002 was designed to create oversight and decrease the amount of
corruption in the accounting industry. The Article includes a number of provisions dealing with
financial reporting, conflicts of interest, corporate ethics and the oversight of the accounting
profession, as well as establishing new civil and criminal penalties. The Institute of Management
Accountants' (IMA) code of ethics is a set of ethical standards of for management accountants.
Management accountants have a moral obligation to perform their services at the highest ethical
level possible. The four main principles of standards are competence, confidentiality, integrity, and
objectivity. Variable cost are expenses that vary with production. Electricity

Sarbanes Oxley Act Research Paper
Sarbanes Oxley Act
Research Project
Brielle Lewis
MBA 315
March 6, 2014
I. Abstract
The purpose of the Sarbanes–Oxley Act is to protect investors by improving the accuracy and
reliability of corporate disclosures made pursuant to the securities law, and for other purposes.
(Lander, 2004) The Act created new standards for public companies and accounting firms to abide
by. After multiple business failures due to fraudulent activities and embezzlement at companies such
as Enron Sarbanes and Oxley recognized a need for the revamping of our financial systems laws,
rules and regulations. Thus, the Sarbanes–Oxley Act was born.
II. Background/Purpose
The Sarbanes Oxley Act was signed into law on July 30, 2002 by then President ... Show more
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(Green, 2004)
IV. Requirements for Publicly Traded Companies
Public companies issuing securities, public accounting firms, and firms providing auditing services
whether they are domestic or foreign must comply with Sarbanes–Oxley. (Sarbanes–Oxley Act
Section 404, 2002) Additionally, publicly traded companies with a market capitalization greater than
$75 million must comply with these new rules. (Don E. Garner, 2008) A company's management is
required to provide an external auditor with all financial statements for the current review period.
Upon reviewing these statements the auditor issues a report classified as unqualified, unqualified
with explanation, qualified, adverse, or disclaimer based on what they find or do not find. All public
companies reports are available on the Securities Exchange Committees website, below is a sample
of what this report looks like. You can imagine what a relief this was for investors, to be able to
search any company and find statements solidifying their prospective investment.
Report of Independent Registered Public Accounting Firm The Board of Directors and Shareholders
of McDonald's Corporation
We have audited the accompanying consolidated balance sheets of McDonald's Corporation as of
December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive
income, shareholders' equity, and cash flows for each of the three years in the period

The Sarbanes-Oxley Act
In this paper, we will be discussing how Sarbanes Oxley has affected the American business and if it
has accomplished its goals. The goal of the Sarbanes–Oxley Act (SOX) is to convey confidence in
the stock exchange, but it does not defer all immoral activities that take place on the stock exchange.
People no matter the law, are responsible for the quality of their work and are accountable for the
integrity of themselves and their company. Their own ethical values can take precedence over those
set by Sarbanes–Oxley. Not all values are equal in quality, and a person may go above the rules
delegated by Sarbanes–Oxley, however, there is another side. Sarbanes–Oxley has created a fear
among business practitioners that this new set of standards ... Show more content on Helpwriting.net
...
Congress enacted the Sarbanes–Oxley (SOX) Act of 2002 to restore investor confidence by
requiring public companies to strengthen corporate governance through several mechanisms,
including enhanced disclosure on Internal Control Over Financial Reporting (ICFR). As claimed by
regulators, the disclosures on the effectiveness of ICFR are aimed at improving the quality of
financial reporting, which would, in turn, reduce the information asymmetry for investors in U.S.
capital markets" (Donaldson). Sarbanes– Oxley named after its creators, Senator Paul Sarbanes, D–
Md and Congressman Michael Oxley, R–Ohio. Enacted in 2002 with the purpose to crack down on
corporate fraud. The implementation of Sarbanes–Oxley led to the creation of the Public Company
Accounting Oversight Board (PCAOB) to oversee the accounting industry. It was created to
eliminate corporate fraud, and it put in place a ban on company loans to executives while also giving
job protection to whistleblowers. Before SOX was put into place the accounts were a self–regulated
profession, such as medical professionals and lawyers. This is what led to the fraudulent actions of
major institutions, people can be greedy, and they need checks and balances to ensure the fidelity of
the firm. There are criminal enhanced penalties for corporate fraud and related misdeeds, this brings
justice to the sector as well as working as a deterrent for additional immoral

The Significance of the Sarbanes–Oxley Act of 2002 I. The audit profession before 2002 The audit
profession is a relative new comer to the accounting world. The Industrial Revolution, with the
growing business sector, was the spark that resulted in auditing techniques being sought out and
utilized. Initially, audit techniques and methods were adopted by companies to control costs and
detect fraud, which is more closely aligned with internal auditing. However, the need for mandatory
oversight of public companies was recognized after the great stock market crash of 1929 (Byrnes, et
al., 2012). This brought about the Securities and Exchange Act of 1934 creating the Securities and
Exchange Commission (SEC). At that point, the SEC was tasked with ... Show more content on
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Should the increased audit fees charged to clients be the basis for the increased costs calculation?
Another area that could be considered a loss is the loss of non–audit or consulting fees to the public
accounting firms. Further, are the indirect costs, such as the consideration of lost opportunities that
are attributable to the Sarbanes–Oxley Act of 2002 (Jahmani, Yousef; Dowling, William A., 2008).
Another cost to comply with Sarbanes–Oxley Act of 2002, was the PCAOB inspections. Public
accounting firms put great effort and much money into preparing for a PCAOB inspection due to
how detailed the inspections could be. The initial increases in costs for compliance with the
Sarbanes–Oxley Act of 2002 have many ranges depending on the source and inputs. During 2005,
based on a sample of the Fortune 1000 companies, there was an average increase in the audit fees of
$2.3 million (Jahmani, Yousef; Dowling, William A., 2008). The public accounting firms suffered
greatly as a result of the Sarbanes–Oxley Act of 2002 compliance stipulations. As of 2008, the
estimate by the SEC was that compliance cost $2.3 million per year in direct costs related to
compliance for public accounting firms

Sarbanes-Oxley Act Summary
The Sarbanes–Oxley Act was conceived by Senator Paul Sarbanes and Congressman Michael Oxley
and signed into legislation by George W. Bush in 2002. The 11 titled Act became necessary when
investors lost their confidence in days following the Enron, Arthur Anderson, and WorldCom
fiascos. The purpose of the law is to provide board members, executives, auditors, attorneys, and
directors with specific written duties and penalties for noncompliance and "to protect investors by
improving the accuracy and reliability of corporate disclosures made pursuant to the securities
laws," as stated by the Act. The SOX has become known to many as the greatest security law since
the Security Exchange Commission was formed in 1934.
Title I consist of nine sections ... Show more content on Helpwriting.net ...
This title consists of 9 sections that instruct in the behavior of auditing firms and establish guidelines
for external auditor independence. It also sets restrictions for clients outside of auditing boundaries
and requirements for audit partner rotation.
Title III is Corporate Responsibilities. These eight sections state the financial and accounting
responsibilities of public companies. They also issue that senior executives are held responsible for
the completeness and accuracy for financial documents. Requirements for audit committees and
limits and penalties for corporate officers are also included in the title.
Nine sections of Enhanced Financial Disclosures make up title IV. These sections discuss the
requirements for stock transactions, off–balance sheet transactions, enhanced reporting, and
relationships with "unconsolidated entities. It requires audits and reports on all financial records and
also sets internal control standards in relation to completeness and correctness of those documents.
Title V consist of a section titled Analyst Conflicts of Interest. This title's purpose is to restore
investor's confidence. This is done by setting rules and guidelines for the National Securities
Exchanges and security

2002 Sarbanes-Oxley Act
Introduction
The 2002 Sarbanes–Oxley Act was implemented for the main purpose of protecting investors
through enhancing and promoting a real sense of transparency, precision and accountability when it
comes to the governance of corporate entities and this was to ensure that the divulgences employed
by the corporates are in pursuant to the ordinances of the sureties of the investors and the act also
had other functions as well. In brief, the Act was enactment in 2002 was mainly that it helps in
restoration of public confidence and integrity to the financial markets as events witnessed by
corporates going under with examples like Tyco, Enron, Adelphia and Worldcom (Orin, 2008). It
became very crucial for corporates to engage in effective corporate ... Show more content on
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The requisites in the Code of Ethics represented in the Sarbanes–Oxley Enactment have formed a
foundation in the world of business because business administrators and stakeholders are now
mandated to abide by the guidelines in the Act but they still need to be improved. When tackling the
issue of social responsibility of a corporate it is of utmost significance that transparency be a key
contributor, while ethics is considered by most in business as an oxymoron. People that lack moral
standards will more often than not look for loo–holes in this relations due to their evil behaviors,
however business principles and moral publication should be ensured so that such behaviors are
dealt with in line with the law. "There has been a number of scandals reported in relation with
accounting fraud and bad corporate governance as this are termed the biggest reasons why
businesses are failing as high–profile organizations continue to subside. Investor confidence levels
dropping in relation to financial capital markets due to investors incurring losses and correction
mechanisms of the market that were in place were inadequate thus forced the enactment of the SOX
Act by Congress (Jain,

The Implications of the Sarbanes Oxley Act on the...
The Implications of the Sarbanes Oxley Act on the Accounting Profession
Abstract
On July 30, 2002, the Sarbanes Oxley Act (also known as SOX) was signed into law by President
George W. Bush. The Sarbanes Oxley Act of 2002 is a federal law that set new or improved
standards for all U.S. public company boards, management and public accounting firms. Covered in
the eleven titles are additional corporate board responsibilities, auditing requirements and criminal
penalties. This essay reviews the implications of the Sarbanes Oxley Act on the accounting
profession.
The Implications of the Sarbanes Oxley Act on the Accounting Profession
President George W. Bush signed the Sarbanes Oxley Act into law on July 30, 2002. ... Show more
Section 802 specified fines up to as much as five million dollars and up to twenty years
imprisonment, or both. Section 1107 mentions fines and up to ten years imprisonment for any
harmful actions retaliated toward whistleblowers (FindLaw, 2002). External auditors (only those
registered with the Public Company Accounting Oversight Board) were required to review these
financial statements and issue opinions on the accuracy of the financial reports and whether
effective internal

The Sarbanes Oxley Act: Effect On Technology
The Sox act had many different affects on technology such as IT Security, IT operations, IT
Managers and IT Compliance requirements. The Sarbanes Oxley Act impacted IT Security by
governing how public companies are handing their financial reporting. "In the long term, SOX will
affect virtually every aspect of information security" (cmadmin). For the Sox act to work
accordingly two departments had to collaborate to bring the Sox to its full effect. Security and IT
architects made up the first group and they were responsible for having experience in identity and
access management as well as technologies. The second group was made up of finance, legal audit,
and compliance professionals who were responsible for planning, testing and executing

Consequences Of The Sarbanes-Oxley Act Law
The Sarbanes–Oxley Act law was passed in 2002, this law came in effect after numerous of
accounting fraud cases in corporations. A few cases that have caused the Sarbanes–Oxley Act to
pass were the waste management scandal in 1998. A Houston waste management company has
reported false financial earning of over 1.7 billion dollars. The top executive chairmen and Arthur
Andersen Company work together by falsely increasing the company's property depreciation on the
balance sheet. Once new management became a part of the company and viewed the books they
notice the things the top executives were doing. The consequences resulted in settled a shareholder
class action for $457 million and Arthur Andersen was fined by the SEC for $7 million dollars.

Analysis of the Sarbanes-Oxley Act
Analysis of the Sarbanes–Oxley Act
Abstract
The Sarbanes–Oxley Act (SOX) was enacted in July 30, 2002, by Congress to protect shareholders
and the general public from fraudulent corporate practices and accounting errors and to maintain
auditor independence. In protecting the shareholders and the general public the SOX Act is intended
to improve the transparency of the financial reporting. Financial reports are to be certified by the
Chief Executive Officer (CEO) and Chief Financial Officer (CFO) creating increased responsibility
and independence with auditing by independent audit firms. In discussing the SOX Act, we will
focus on how this act affects the CEOs; CFOs; outside independent audit firms; the advantages and
a ... Show more content on Helpwriting.net ...
A recent study by Xue Wang (Emory University) tackles how SOX has affected the compensation
and turnover rates of CFOs. They play a critical role in developing firms' financial reporting and
making voluntary disclosure decisions. Moreover, CFOs are ultimately responsible for the quality of
internal control systems. The study provides some important insights about the impact of SOX on
the executive labor market. It shows that requiring more disclosure of information about a firm's
internal controls provides some positive benefits with respect to corporate governance, in this case
making it easier for boards to monitor the activities of CFOs. In comparing and contrasting firms
with strong internal controls received an increase in salary, bonus, and total compensation in the
post–SOX time periods. In contrast, CFOs of corporations reporting a problem with their internal
controls incurred a significant reduction in their compensation packages. With respect to CFO
turnover, Wang did find that CFO turnover rates generally increased form the pre– to post–SOX
period.
Outside independent audit firms
The Sarbanes–Oxley Act (SOX) was enacted in July 30, 2002, by Congress to protect shareholders
and the general

Sarbanes-Oxley Act Pros And Cons
The year 2002 marked a critical time for many corporate businesses as it was known for one of the
most infamous years in organizational scandal. The Enron debacle, Tyco, Adelphia, and WorldCom
all were involved in some sort of corruption. These corporations misfortunate mishaps was the
driving force for the implementation of ethical laws. One law in particular was the Sarbanes–Oxley
Act (SOX). This law was enacted to help restore integrity and public confidence to the financial
markets (Orin, R. 2008). The Sarbanes–Oxley Act is not a law that is new to the scene of corporate
America, in fact in 1934 the Securities and Exchange Commission was introduced to help police the
U.S. financial markets. As a result,

Sarbanes-Oxley Act 2002
The Sarbanes–Oxley Act of 2002 (often shortened to SOX) is legislation passed by the U.S.
Congress to protect shareholders and the general public from accounting errors and fraudulent
practices in the enterprise, as well as improve the accuracy of corporate disclosures. The U.S.
Securities and Exchange Commission (SEC) administers the act, which sets deadlines for
compliance and publishes rules on requirements.
The Sarbanes–Oxley Act was enacted in response to a series of high–profile financial scandals that
occurred in the early 2000s at companies including Enron, WorldCom and Tyco that rattled investor
confidence. The act, drafted by U.S. Congressmen Paul Sarbanes and Michael Oxley, was aimed at
improving corporate governance and accountability. ... Show more content on Helpwriting.net ...
Chief legal counsel for companies of all sizes will follow the proceedings closely, watching the
jury's deliberations and gauging its reaction to the prosecution. (Longnecker, 2004).
Passed in the wake of last year's corporate accounting scandals, the Sarbanes–Oxley Act requires
public companies to disclose more financial information than in the past, and it holds corporate
directors and officers more accountable for the accuracy of disclosures than ever before. Sarbanes–
Oxley also requires companies' top officers to assess and certify the effectiveness of the internal
controls they use for financial reporting.
Some of the Sarbanes–Oxley requirements aren't entirely clear, and the Securities and Exchange
Commission, which implemented the law, hasn't been all that helpful. In comments on section 404,
the SEC ruled that beginning with a company's fiscal year ending on or after June 15, 2004, it must
issue four statements: one indicating management's responsibility for maintaining internal controls;
one identifying the framework used to evaluate internal controls; one saying the company's auditor
attests to management's assessment; and one assessing the effectiveness of internal–reporting

After major corporate accounting scandals, especially from Enron and WorldCom, Congress enacted
the Sarbanes–Oxley Act of 2002. It is a United States federal law that set corporate governance over
U.S. Public Companies. The bill contains eleven sections which hold a public corporation's board of
directors' accountable, created criminal penalties for certain misconduct, and created regulations to
define how public corporations are to comply with the law. Even though it was enacted almost
fifteen years ago there is still debate and controversy. Even now there is talk about Congressional
Republicans aiming to loosen a provision of Sarbanes–Oxley, which was introduced in the Financial
Choice Act by Jeb Hensarling (R., Texas), the chairman of the ... Show more content on
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Many believe it was politics that got it pushed through, and that its intent was to lower risk taking
and competitiveness. Even after so many years it is still difficult to measure the legislations overall
net benefits. One worthy note to justify the legislations achievements despite its criticism is the fact
that the act itself and the institutions it created are still going on intact since its original enactment.
With the mandate to require public companies to obtain an independent auditor of their internal
control practices, many small companies felt the impact on the financial side, until it was ultimately
deferred for companies with market caps of less than $75 million and finally made permanent in the
Dodd–Frank Act. Eventually audit standards were also modified in 2007, which according to an
article from the Journal of Accountancy called "Changes in Accounting for Changes" by Jack O.
Hall, "reduced costs for many firms by 25 percent or more per year." Even with the act having high
initial costs, research suggests that it has proved beneficial. Many corporations have been able to use
the quality information from independent auditors to assess acquisitions more effectively, mangers
have improved on internal reporting procedures, and the internal control testing has become more
cost effective over

Sarbanes-Oxley Act Case Study
The Sarbanes–Oxley Act also helped managers see that their companies had many weaknesses, such
as "lack of enforcement of existing policies, unnecessary complexity, clogged communications, and
a feeble compliance culture" (2006), per the Harvard Business Review. Managers and executives
could recognize their company's weaknesses because SOX requires publicly traded companies to be
standardized. Section 302 explains the corporate responsibility behind the financial reports, such as
how the CEO and CFO must be involved in the auditing process and how they must report any fraud
that they see in the reports. This section forced managers to overlook their internal audits and
therefore helped them to see what needed to be done to improve the financial ... Show more content
on Helpwriting.net ...
Even though it is a requirement for publicly traded companies, private and nonprofit companies
benefit from it as well. Executives and management follow SOX's practices and benefit from the
positive outcomes. Private and nonprofit companies have also improved their documentation
system, improved policies and procedures, and updated or added whistleblower policies. Many
private and nonprofit companies are implementing SOX requirements to improve their companies'
overall operations. The Sarbanes–Oxley Act therefore has been beneficial not only to publicly traded
companies, but also to private and nonprofit companies, improving the accounting system in

When revisiting some history where scandals have taken place such as Enron or WorldCom, it
became necessary for stronger controls to be put in place and have all people involved held
accountable for their actions. It is for this reason that Sarbanes–Oxley Act is in place. It has not
stopped fraud from occurring; however, it does create a deterrent. In reading about the Societe
Generale fiasco poor IT security is the focal point in this fraud. Stronger security controls will be the
only way fraud of this magnitude will not take place again. Three key things need to take place
internal controls, strengthen financial reporting, and corporate governance.. For protection of the
bank, there needs to be more than one sign on/log in into a system

The Sarbanes-Oxley Act Summary
A company discloses their financial reporting and other financial information with their
shareholders, creditors, financial analysts, and employees. The creditability of a company's financial
information hinges on its internal control of effectively adhering to governing regulations.
According to Epstein (2014) the Sarbanes–Oxley Act of 2002 was established to eradicate
companies from submitting fraudulent financial reporting. "The Sarbanes–Oxley Act changes
management's responsibility for financial reporting significantly. The act requires that top mangers
personally certify the accuracy of financial reports" Blokhin (2018). This improves the quality of
financial information being presented permitting decision makers the ability to have

Sarbanes-Oxley Act Analysis
Sarbanes–Oxley Act 2002 With the fall of Enron, WorldCom, and several other major corporations
in the late 1990's, the need for transparency and accountability in accounting was brought to the
forefront for investor's and board member's alike. Paul Sarbanes, a former senator from Maryland,
and Mike Oxley, a former member of the House of Representatives from Ohio, together created
what is now known as the most important legislation since the 1930's (Litvak, 2014). This bill, also
known as the Public Company Accounting Reform and Investor Protection Act, changed the way
companies that offer public securities did business. No longer would a publicly offered company get
to create and govern its internal controls; they would now be regulated by ... Show more content on
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Many venture capitalistic companies did not or financially could not comply with the new
regulations and requirements provided for in the act, so they took their companies to the private
sector, no longer offering shares on the public exchange (Ecer & Kahlid, 2013). The main
disadvantage to companies regarding SOX is Section 404, the internal controls portion of the act.
The major complaint– the requirements of section 404 are "new, radical and ill–considered" (Gupta,
Weirich, & Turner, 2012). The internal controls section requires companies to report on their internal
control structure and procedures for financial reporting through annual audits, which for small
companies is very costly. However, in 2010, the Dodd–Frank Wall Street Reform and Consumer
Protection Act allowed for the permanent exemption of issuers with a market value of less than $75
million from the Section 404 of the SOX negating this disadvantage, at least for these non–
accelerated firms. The additional time needed to implement the requirements of SOX caused issues
as well, impacting those small firms the hardest. In addition, investors of foreign companies were
not happy with the new regulations of SOX and an estimated loss of five to ten percent of market
capital occurred (Litvak,

The Sarbanes–Oxley Act and how it has affected America The time frame is early 2002, and the
news breaks worldwide. The collapse of corporate giants in America amidst fraud and stock
manipulations surfaces. Enron, WorldCom, HealthSouth and later Adelphia are all suspected of the
highest level of fraud, accounting manipulation, and unethical behavior. This is a dark time in
history of Corporate America. The FBI and the CIA are doing investigations on all of these
companies as it relates to unethical account practices, and fraud emerges. Investigations found that
Enron, arguably the most well–known, had long shredding sessions of important documents and
gross manipulation of stocks and bonds. This company alone caused one of the biggest economic ...
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The Securities and Exchange Commission (SEC) is an agency created by the federal government to
protect the investors and regulate the securities markets, as well as monitoring the corporate
takeovers in the United States (Jones, 112). The SEC oversees security transactions, mutual fund
trading, and activities of financial professionals to international deception and prevents fraud. With
certain exceptions, the Commission has the authority to regulate trading and issuance of law
securities that are offered to the public, it also requires the issuers to provide the investors with
sufficient information in order to make informed

The Sarbanes-Oxley Act Case Study
On July 30, 2002, George Bush signed into law the Sarbanes–Oxley Act. This act was a product of
the collapse of major corporations such as Enron, Global Crossing, Adelphia, and WorldCom. "All
four companies allegedly hid their true financial conditions from creditors and shareholders until an
inability to meet financial commitments forced these companies to restate earnings and reveal
massive losses. The financial collapse of these corporations, a result of allegedly fraudulent
accounting practices, created a ripple effect that weakened a stock market already deflated by both
the bursting of the technology bubble in 2000 and investor uncertainty resulting from the terrorist
attacks of September 11, 2001(Recine, 2002)." In order to prevent ... Show more content on
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"The business judgment rule, as a standard of judicial review, is the common law recognition of the
statutory authority that has been vested in the board of directors (Shu–Acquaye, 2004)." "Under the
rule, which operates as a standard of judicial review, the burden is placed on the party challenging a
decision of the directors to establish facts rebutting that presumption (Skinner, 2006)." "Courts
invoke the business judgment rule in assessing the conduct of directors and determining whether to
impose liability in a particular case (Shu–Acquaye, 2004)." This rule does not provide unlimited
protection for directors though. "Although, the business judgment rule is designed to foster the
complete exercise of managerial power granted to directors, it is not an unfettered power (Shu–
Acquaye, 2004)." "Consequently, the business judgment rule does not afford protection to directors
who exercised "unintelligent" or "unadvised judgment," or who submitted to "faithlessness, fraud, or
self–dealing (Shu–Acquaye, 2004)."" "Application of the business judgment rule is based on a
demonstration that informed directors did in fact make a business judgment sanctioning the matter
being examined. A director's obligation to inform himself, in preparation for his decision, derives
from the fiduciary capacity in which he serves the company and its stakeholders (Shu–Acquaye,
2004)." "So long as the directors' decision was reasonably informed and can be attributed to any
rational business purpose, a court will not substitute its own notions of sound business judgment for
that of the directors, unless that presumption is rebutted (Skinner, 2006)." Prior to the court's
decision in Smith v. Van Gorkom, the court was reluctant to hold boards liable for breach of

The Sarbanes-Oxley Act (SOX) Act
Introduction: "... The era of low standards and false profits is over; no boardroom in America is
above or beyond the law." (Bumiller) By way of landslide votes in both the U.S. House of
Representatives and the U.S. Senate, in July of 2002, the Sarbanes–Oxley (SOX) act was approved.
To understand the cause and effect of this landmark legislation, the SOX act warrants exploration of
the events leading to its creation, the details of the act itself, and the impacts on responsibilities to
both firms' management teams and their auditors. While the implementation of Sarbanes–Oxley has
been positive for investors, company managers and auditors, specifically, are bearing the burden of
complying with SOX through significantly greater responsibilities. ... Show more content on
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Andersen's reputation was so tarnished from the revelations of the conspiracy that no public
company would have Arthur Andersen as an auditor. Andersen's practice was disbanded and has
now become defunct with only a handful of employees still working for the firm as they continue to
wind down the business. In July of 2002, not long after the exposure of the Enron accounting fraud
and bankruptcy, WorldCom Inc. filed for Chapter 11 bankruptcy protection. WorldCom Inc.
admitted that the company had fraudulently misclassified over $3.8 billion in payments for line
costs as capital expenditures rather than current expenses (Beresford). The company's executives
perpetrated this fraud, grossly overstating revenues by improperly transferring billions of dollars in
line cost expenses to asset accounts over a number of years. These transfers reduced WorldCom's
reported line costs and increased pre–tax income by $7 billion overall (Beresford). These two
disgraceful accounting frauds by senior and executive managers at Enron and WorldCom, as well as
similar events that took place at other public companies in the early to mid–2000s and the Arthur
Andersen conspiracy were the genesis for the call of accounting reforms and auditor independence
that would ultimately become the

The Sarbanes Oxley Act Of 2002
Internal controls are measures put into place that allow for more accurate and deliberate
representation of a company's financial data. Internal controls also serve to protect a company's
assets from theft, fraud or misuse. With internal controls in place it becomes more visible to
recognize if someone is stealing or misusing funds in any way. Internal controls also help to zoom in
on errors or unintentional mistakes. When these errors are picked up on early it eliminates future
problems for the company and its investors down the road. The Sarbanes Oxley Act of 2002 is what
enforces such internal controls of companies. This Act requires all United States companies to
follow internal control guidelines and standards. Many argue ... Show more content on
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Another principle is to have a separation between the physical handling of the assets and the
recording of it. This takes away the temptation for personal gain and lessens the chance of misuse.
Segregation of duties and functions is another safeguard companies can utilize to promote internal
controls. Having one person responsible for multiple tasks often leads to mistakes and causes more
confusion when trying to catch discrepancies. Independent internal verification is a useful internal
control. An example would be having an outside auditor check your books. Another principle
involves documenting procedures. The more documentation a company has the better equipped they
are for keeping solid internal controls in place. The final principle involves other controls such as
bonding employees through insurance policies, rotating duties often and ensuring thorough
background checks on employees prior to employment (Weygant, 2008). These additional checks
and balances are critical because they not only lay the foundations for ensuring a company's internal
controls are working as designed, but they also help to maintain the momentum of such controls. As
mentioned adherence to the SOX laws are not only required but they are necessary to keep a
business at its top peak. Once a company has to report an infringement on its' internal controls stock
prices will surely be impacted because investors become worried about misuse of funds. Sometimes
this admission of a

The Sarbanes-Oxley Act Of 2002
Some can say that the Sarbanes–Oxley Act of 2002 is working while some say that there still ways
to get around to committing corporate fraud. Washington wants to crack down on corporate fraud so
they came up with the Sarbanes–Oxley Act in 2002 that was designed to protect the interest of
investors. "The Sarbanes–Oxley Act established oversight of public corporate governance and
financial reporting obligations and redesigned accountability and ethics standards..." (Ferrell, O.,
Hirt, G., & Ferrell, L., 2009). The act was an important stepping–stone in the right direction
especially when responding to the financial scandals of Enron and WorldCom. Those scandals shook
customer's faith and confidence in corporate management of private organizations.

Essay on Overview of the Sarbanes-Oxley Act (SOX)
The Sarbanes–Oxley Act, frequently known as the SOX. The act was passed on in 2002 as a federal
United States law. The law was drafted in response to the numerous numbers of financial scandals
performed by high profile corporations such as Johnson & Johnson. The action has created a new
company standard of responsibility in order to protect the valued stakeholders, as well as the public,
from the deceitful practices of various organizations. The Sarbanes–Oxley Act ... Show more
As a result of authorizing the Sarbanes Oxley necessities for the non profits healthcare firms, fraud
connected matters can be decreased. In addition to this it can as well be advantageous for those
increasing the business supremacy of the not for profit hospitals. Completion of a number of SOX
segments like for instance changing the lead review partners, setting up a review committee together
with pre approving non review fees would be obliging for the non profit healthcare businesses in
rising of the corporate governance (Act, 2002). Other additional SOX facts state: The legislation
acquires its name from the authors who is Senator Paul Sarbanes along with the Representative
Michael Oxley The Senate election: 99–0 The Act holds 11 designate sections The Public Company
Accounting Oversight Board ( PCAOB ), which was created to regulate, direct, and discipline firms
in regards to their fulfillment to this law. The conditions of Sarbanes Oxley have always been
effective in regulating the principled behavior of the for profit health care businesses. It is for the
reason that as SOX have need of growth of a system of principles, it gives confidence to the
employee in order to report any form of immoral and deceitful behavior without the fear of revenge.
in addition, when following the SOX provisions , for the profit making healthcare

The Sarbanes-Oxley Act (SOX)
"Laws and regulations are established by governments to set minimum standards for responsible
behavior – society's codification of what is right and wrong" and to satisfy stakeholder's concerns
regarding companies' abilities to act in an ethical fashion at all times (Ferrell, Fraedrich, & Ferrell,
2013, p. 95). The Sarbanes–Oxley Act (SOX) was created following accounting fraud scandals of
several companies, including the Enron Corporation and Worldcom (Ferrell et al, 2015). The Act
was established to protect stakeholders and the public from accounting fraud. It has done a fair job
of deterring fraudulent reporting (Langevoort, 2007); however, I do not think regulating legislation
of any kind can completely prevent future ethical misconduct.

Sarbanes-Oxley Act Research Paper
Sarbanes–Oxley Act of 2002
Karla Azcue
ACC 120–09
Mr. Donald Senior
The Sarbanes–Oxley Act of 2002 is one of the most important legislations passed in the 21st century
effecting financial practice and corporate governance. This act was passed on July 30, 2002 thanks
to Representative Michael Oxley a republican from Ohio and Senator Paul Sarbanes a democrat
from Maryland. They both passed two different bills that pertain to the same problem which had to
do with corporation's auditing accountability and financial fraud problems within corporations. One
was bill (S. 2673) brought by Senator Sarbanes and the other bill (H. R. 3763) brought by
Representative Oxley. Both bills where passed separately one by the house and the other by the ...
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• Employee protections allowing those corporate fraud whistleblowers who file complaints with
OSHA within 90 days to win reinstatement, back pay and benefits, compensatory damages,
abatement orders, and reasonable attorney fees and costs.
Furthermore, according to soxlaw.com an online guide to the Sarbanes–Oxley Act the major
compliances to the act rest on 5 sections:
• The first one is the Sarbanes–Oxley section 302, which is found under Title III of the act,
pertaining 'Corporate Responsibility for Financial Reports'.
This section asks for sporadic legal financial reports to include

The Sarbanes–Oxley Act of 2002 (SOX) was passed by Congress and signed into law by President
Bush to "mandate a number of reforms to enhance corporate responsibility, enhance financial
disclosures and combat corporate and accounting fraud" and applies to all public companies in the
U.S., large and small (The Laws That Govern the Securities Industry, 2015). The main purpose of
Sarbanes–Oxley is to "eliminate false disclosures" and "prevent undisclosed conflicts of interest
between corporations and their analysts, auditors, and attorneys and between corporate directors,
officers, and shareholders" (Neghina & Riger, 2009). As a whole, the Sarbanes–Oxley Act is very
complex and affected organizations must do their due diligence to ensure they ... Show more content
Prior to the creation of the Sarbanes–Oxley Act in 2002, "a number of high profile accounting frauds
and misstatements, some of unprecedented scope and scale, dominated the headlines" (Kulzick,
2008). According to Kulzick, one out of every ten public companies had restated earnings during the
last five years and companies such as Enron, WorldCom, Adelphia, Tyco, Global Crossing, and
Arthur Anderson were dominating the headlines with financial discrepancies resulting from poor
oversight that were contributing to massive losses in the stock market. In my opinion, all fiscally
responsible organizations should want to pull best practices from Sarbanes–Oxley to ensure their
reporting is accurate, consistent, appropriate, complete, and understandable regardless of if they are
requirements or not. This can be accomplished by ensuring the CEO and CFO are certifying the
accuracy of all financial information and internal controls before it's published for public

At the turn of the 21st century, more fraud and scandals ensued, therefore more actions were
required in order to crack down on the issues surrounding financial reporting. The Sarbanes – Oxley
Act (SOX) 2002 was established, in order to enforce corporate governance rules for publicly traded
companies (Schroeder et al, 2011). The SOX added more constraints on corporations, making
executives and managers more accountable for their actions and financial reporting. The SOX also,
established the Public Company Accounting Oversight Board (PCAOB), which holds the
responsibility of setting auditing standards and practices. As a result of these actions, there were
fewer scandals and unethical behavior; however, they still exist in one form or another. ... Show
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Additionally, there will be a need for a global security force to apprehend offenders of the new
standards. This could be a controversial problem in itself. The main issue, is to establish the
standards first and get every public trading company to buy in on the idea of implementing the
standards. Currently, many countries have agreed to adhere to the international standards. As more
countries are adopting the IFRS, the U.S. has yet to agree to the standards. Even though the GAAP
and IFRS resembles closely, there are still some issues to be worked out (Street, 2012). Eventually
the U.S. will agree to the terms of the IFRS, once all the terms and conditions are in balance (Zeff,

Sarbanes Oxley Act
Sarbanes–Oxley Act
The Sarbanes–Oxley is a U.S. federal law that has generated much controversy, and involved the
response to the financial scandals of some large corporations such as Enron, Tyco International,
WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing
and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP
Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate
and covers and sets new performance standards for boards of directors and managers of companies
and accounting mechanisms of all publicly traded companies in America. It also introduces criminal
liability for the board of directors and a requirement by ... Show more content on Helpwriting.net ...
There is much more of an emphasis on training and certification of auditors to understand and be
able to design processes that are in adherence to the SOX requirements (Michelman, Waldrup, 32,
33). These changes in accounting processes are just the beginning of the much broader and much
more pervasive changes at the fundamental business level within companies. The changes required
by SOX also force entirely new approaches to managing, reporting, sorting, and accessing financial
information, often requiring new IT systems and processes as well. The coordination of IT systems
and processes, accounting and reporting, and the definition of entirely new business processes are all
happening at the same time in many publicly–held companies in the U.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 with the SOX standard in
any meaningful period of time (Radtke, et.al.) As a result, many accounting professionals also must
manage outsourcing contracts with companies who specialize in BPM and SOX

Essay on The Sarbanes-Oxley Act
There are so many organizations today that are using the Sarbanes–Oxley (SOX) legislation that
helps to safeguard their company and their financial records. The Sarbanes–Oxley act began in 2002
and the purpose behind this act was to protect organizations, it had a major impact on accounting
and record keeping. Because of Enron, they passed this act for publicly–traded corporations to better
implement control to their enterprise data. "Named after Senator Paul Sarbanes and Representative
Michael Oxley, who also set a number of deadlines for compliance" (SOX Law ). "The Sarbanes–
Oxley Act is arranged into eleven titles, but the most important sections within these are often
considered to be 302, 401, 404, 409, 802 and 906" (SOX Law ). The ... Show more content on
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This is the type of service that IBM is offering to their customers, and being SOX compliant.
"Section 404 mandates that company provide an annual report on internal controls, attested to by an
external audit firm" (IBM). While IBM is offering these services there are other companies that are
doing the same service too.
Protiviti an independent global risk and internal audit advisory firm, surveys client attitudes about
the costs, and the benefits, of compliance with the law. Protiviti in many cases is helping to manage
document controls, to perform tests, and develop an option of the internal controls that the external
auditors rely on. According to this company they believe that "Companies with weak or non–
existent internal controls over financial reporting are more susceptible to fraud and those frauds will
take longer to uncover" (McKenna, 2011). They have reported that a lot of companies spend
between $100,000 and 1,000,000,000 on compliance activities; this depends on the size of the
company. About 50 percent of companies do most of their SOX work internally within the company.
Within the corporation, Protivite address the smaller companies in three areas where their internal
control compliance. Companies will find that they are behind in IT general controls, spreadsheet
controls, and segregation of duties. They are doing what they can to help in these areas.
To conclude, the Sarbanes–Oxley act

Due too many fraudulent activities in companies such as Enron, WorldCom, and Tyco International
consumers became aware that something needed to change. As a result, Congress passed the
Sarbanes–Oxley Act (SOX). SOX gave the public and investors a renewed confidence and
strengthen corporate governance to insure that companies are reporting their financial information
correctly and accurately. The act requires management and independent auditors to continuously
evaluate a firm's internal financial–reporting controls on a yearly base. Furthermore, SOX stiffens
disclosure guidelines, requires management to attest the firm's reports, reinforces boards'
independence and financial–literacy requirements, and increases auditor–independence standards.

Sarbanes Oxley Act of 2002 Essay
Sarbanes–Oxley Act of 2002 ACC/561 Sarbanes–Oxley Act of 2002 Following a number of
discovered fraud scandals committed by well–known corporations and in order to restore public
confidence in the stock market and trading of securities, the United States congress passed the
Sarbanes–Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock
Exchange and the Securities and Exchange Commission, among many other national overseeing
committees, a number of rules and regulations were proposed and adopted and that demanded new
processes and programs be instilled for ensuring compliance with the requirements of the new law.
The new rules and regulations pertaining to the enacted law have a common goal: 1. Pass ... Show
more content on Helpwriting.net ...
Fraud via false financial reporting falls in four categories: 1. Fraudulent financial reporting –
reporting false financial performance and overstating the company's earnings and falsifying the level
of liabilities to attract investor's contributions. 2. Misappropriation of assets – where high level
personnel utilize illegal schemes to benefit self by the use of cooking financial records,
embezzlement, and theft of employee's retirement accounts. 3. Avoiding paying for costs and
expenses while acquiring assets and revenues fraudulently – this takes place in the form of avoiding
paying taxes on all of the company's earning's and where the company liquidates an employee's
pension account and distributes the proceeds among the board members and upper management in
the form of performance bonuses. 4. Expenditures associated with unethical and improper purposes
– this type for fraud includes the use of bribery or improper payment schemes to attain financial
gain or business awards that the company may not have been able to achieve using proper business
practices. Anti–fraud programs are now implemented under the Sarbanes–Oxley by all companies
registered to conduct business in the United States. Such programs are closely monitored, evaluated
and audited annually by the regulatory agencies to ensure and enforce compliance with the law.
Although most companies already employ some form of

Sarbanes-Oxley Act Essay
THE LAW AND ITS HISTORY
What is The Sarbanes–Oxley Act? "With more than half of all American households invested in U.S.
public companies, the discoveries of financial reporting and auditing improprieties at Enron and
numerous other public companies beginning five years ago swelled in 2002 to a national crisis in
confidence in the integrity and reliability of public companies' financial statements and of external
audits." This act of 2002 is a legislation passed by the U.S. Congress to guard shareholders and the
general public against accounting errors and fraudulent practices in the enterprise, as well as
improve the accuracy of corporate disclosures. SOX defines individual accountability and requires
employees to construct an investigation of a business or person before signing a ... Show more
Prior to the scandals, in addition to the unforeseen growth in household participation in the financial
markets, there was a growing interest in equity markets globally. Then, of course, the Enron and
other scandals revealed accounting failures by public companies and tainted the auditing profession
– which investors understandably had thought was acting as their watchdog in attesting to the
accuracy of the financial reports.
Following the failure of Enron in December 2001, in the wake of accounting scandals at major
corporations Adelphia, Peregrine Systems and others, Congress proposed legislation to reform the
governance of public companies to make boards of directors, CEOs and chief CFOs accountable for
corporate misconduct, according to Wikipedia. Sarbanes–Oxley makes employees at public
companies individually responsible for providing true and accurate information about companies'
financial statuses and practicing due diligence to secure proprietary information on investors,
customers, and

The Sarbanes-Oxley Act Summary
The Sarbanes–Oxley Act (SOX) of 2002, aims to combat fraud, improve the reliability of financial
reporting and restores investor confidence. Section 404 of Sarbanes–Oxley emphasize the
management's responsibility in maintaining a sound internal–control structure of financial reporting
and assessing its own effectiveness. While the auditors' responsibility is to attest to the soundness of
management's assessment and to report on the state of the overall financial control system. Although
it has been a question by most executives, however, some approached the new law with gratitude.
As SOX went into effect, more executives had realized the need for internal reforms; they were
startled by the weaknesses and gaps of their internal control that compliance reviews and
assessments had exposed. ... Show more content on Helpwriting.net ...
They can't find the time and resources to do so. But for those who recognized SOX's advantages
from the start they have figured out to leverage the law in order to realize the improvement plans.
SOX's implementation brought many positive changes to several companies. Compliance with SOX
strengthen the good governance of the organization; instill ethical values and exhibit behavior to
both employees and the executive levels. As mandated by the law executives have to attest
personally the effectiveness of internal control and the independent auditor has to attest yearly on
the company's evaluation of such controls. Auditor is expected to assess the documentation of
control and procedures and the competency of employee's performance. With the advent of this law,
executives discovered an opportunity to correct and improved the job–description documentation,
thereby employees can understand the company's

LBJ Company has plans to go public, and the president requested an evaluation from our firm to
understand the new rules of regulations. First of all, the firm will analyze rules that affect company's
transition from private to public. Second of all, LBJ Company should understand all internal
controls system the Sarbanes–Oxley Act of 2002 enforced. This act requires that companies must
maintain an acceptable internal controls systems. Also, it protects companies from corporate fraud
by ensuring that these companies follow and apply specific procedures. All member of corporations
should make sure that these controls are adequate and reliable. Furthermore, following the
Sarbanes–Oxley Act of 2002, companies are more likely to attract investors ... Show more content
As the first bad practice, the company allows only one accountant to be in charge of the company's
financial duties. In the other hand, it can cost the company a lot of money due to the possibility of
fraud. The accounting firm recommended the company to hire someone else fill out one of the
accountant's actual positions to avoid segregation of duties. Another wrong practice is the handling
of the petty cash. We recommend that the company uses the control activity called "establishment of
responsibility." Therefore, the company should only allow one person to handle the petty cash, and it
will prevent theft to occur. Regarding the human resource control activity, HR professionals of LBJ
Company should conduct a background investigation for candidates. Also, conducting background
checks is not expensive and can reduce employees' fraud and

Sarbanes Oxley Act Of 2002 (SOX)
The Sarbanes Oxley act of 2002(SOX), also known as the public company accounting reform and
investor protection act was enacted as a reaction to a number of major corporate and accounting
scandals. These scandals occurred in Enron Corporation, WorldCom, Tyco International, Adelphia
and Peregrine Systems. These companies and corporations were looking very financial sound and
very attractive to investors. However the investors did not know that the success of these companies
were cause by false reports and artificial profits. Which cost investors billions of dollars when their
share prices of affected companies collapsed. Also inadequate accounting practices, bankruptcies,
accounting irregularities and inefficient audit were part of these frauds ... Show more content on
Helpwriting.net ...
At the same time it provides certain protection for whistle–blowers. Title nine of sox is named
"White Collar Crime Penalty Enhancement act of 2002." The White Collar Crime Penalty
enhancement act of 2002 has a great significance because increases the criminal penalties associated
with white–collar crimes and conspiracies. Collar crimes are various types of frauds and the most
common are securities fraud, embezzlement, tax evasion and money laundering. Conspiracies are an
agreement between people to commit any unlawful act. This means that they know the plan, and
intend to break the law. I think this title is crucial because criminal punishment is implemented for
those corporate officers who fail to certify corporate financial

Sarbanes-Oxley Act Advantages And Disadvantages
THE TAX ADVANTAGES OF DISADVANTAGES OF SARBANES–OXLEY
Name
Institution
Date
The Tax Advantages and Disadvantages of Sarbanes–Oxley The Sarbanes–Oxley is an Act passed
by the U.S congress in the year 2002. Its main aim was to protect investors from exposure to
fraudulent activities through accounting activities by United States corporations. Due to the increase
in fraudulent activities by large corporationssuch as Enron Corporation at the turn of the
21stcentury, the United States congress passed the Act. However, this essay would identify the pros
and cons associated with this Act. The Sarbanes–Oxley Act takes into account recent cases such as
the multibillion fraudulent cases such as the Enron scandal that led to the fall of the ... Show more
(2009). The Economic Benefits of the Sarbanes–Oxley Act? Evidence from a Natural Experiment
(1st Ed.). Boston. Retrieved from http://fic.wharton.upenn.edu/fic/papers/09/0941.pdf
Clark, K. (2012). The Effects of Sarbanes Oxley on Current Financial Reporting Standards (1st Ed.).
Retrieved from http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1303&context=honors
Green, S. (2004). A Look at the Causes, Impact and Future of the Sarbanes–Oxeley Act (1st Ed.).
Retrieved from http://scholarlycommons.law.hofstra.edu/cgi/viewcontent.cgi?
article=1024&context=jibl
Grinberg, E. (2002). The Impact of Sarbanes Oxeley Act 2002 on small firms (1st Ed.). Retrieved
from http://digitalcommons.pace.edu/cgi/viewcontent.cgi?
article=1055&context=honorscollege_theses
Hopkins, B. (2016). The Successes and Shortfalls of the Sarbanes –Oxley Act of 2002 (1st Ed.).
Retrieved from http://collected.jcu.edu/cgi/viewcontent.cgi?article=1098&context=honorspapers
Jahmani, Y. (2016). Pros and Cons of Sarbanes– Oxeley Act (1st Ed.). Retrieved from

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