The Sarbanes-Oxley Act
Sarbanes-Oxley Act of 2002
Sabah Saiyed
ACC/561
May 21, 2014
Susan Hurley
Sarbanes-Oxley Act of 2002
“The paper describes the main aspects of the regulatory environment which will protect the public from fraud within corporations. It pays particular attention to SOX requirements and specifically evaluate whether SOX will be effective in avoiding future frauds” (University of Phoenix, 2014).
Introduction
“In the never ending battle against white collar crimes and corporate corruption, the government is enacting and applying various laws and regulations regularly. The policies is updated when and where required but most importantly these regulation must be followed strictly. New regulations and ongoing concern about globalization …show more content…
It was passed in response to a number of corporate accounting scandals that occurred between the years 2000 to 2002. This act set new standards for public accounting firms, corporate management, and corporate boards of directors. Sarbanes-Oxley, or SOX, is a federal law that is the most comprehensive reform of business practices since Franklin D. Roosevelt was President of the U.S. who passed the New Deal” (Peavler, 2014).
“The Enron scandal proved the need to new compliance standards for public accounting and auditing. Enron was one of biggest and financially sound companies in U.S. But its malpractice resulted as a catalyst for the Sarbanes-Oxley legislation. In order to cut down on the incidence of corporate fraud, Senator Paul Sarbanes and Representative Michael Oxley drafted the Sarbanes-Oxley legislation or SOX prior to 2002” (Peavler, 2014). “The Act compliance required top executives to personally certify corporate accounts in addition to maintaining strict internal-control structure and procedure for financial reporting. Sarbanes-Oxley allowed for criminal penalties if fraud was uncovered” (Amadeo, …show more content…
(n.d.). Retrieved from http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1083&context=honors
Making Finance Work for Africa. (2012). Legal and Regulation Environment. Retrieved from http://www.mfwda.org/legal-reglatory-environment/html
Peavler, R. (2014). The Sarbanes-Oxley Act and the Enron Scandal - Why are they Important? Retrieved from http://bizfinance.about.com/od/smallbusinessfinancefaqs/a/sarbanes-oxley-act-and-enron-scandal.htm
Sweeney, P. (2011, January/February). Will new regulations deter corporate fraud? Retrieved from http://www.alixpartners.de/en/Portals/alix/news-docs/Kelly%20Art.pdf
U.S. Securities and Exchange Commission. (n.d.). The Investor's Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation. Retrieved from http://www.sec.gov/about/whatwedo.shtml#.U31C8HTnbIU
University of Phoenix. (2014). Sarbanes-Oxley Act of 2002 paper instructions. Retrieved from
Sabah Saiyed
ACC/561
May 21, 2014
Susan Hurley
Sarbanes-Oxley Act of 2002
“The paper describes the main aspects of the regulatory environment which will protect the public from fraud within corporations. It pays particular attention to SOX requirements and specifically evaluate whether SOX will be effective in avoiding future frauds” (University of Phoenix, 2014).
Introduction
“In the never ending battle against white collar crimes and corporate corruption, the government is enacting and applying various laws and regulations regularly. The policies is updated when and where required but most importantly these regulation must be followed strictly. New regulations and ongoing concern about globalization …show more content…
It was passed in response to a number of corporate accounting scandals that occurred between the years 2000 to 2002. This act set new standards for public accounting firms, corporate management, and corporate boards of directors. Sarbanes-Oxley, or SOX, is a federal law that is the most comprehensive reform of business practices since Franklin D. Roosevelt was President of the U.S. who passed the New Deal” (Peavler, 2014).
“The Enron scandal proved the need to new compliance standards for public accounting and auditing. Enron was one of biggest and financially sound companies in U.S. But its malpractice resulted as a catalyst for the Sarbanes-Oxley legislation. In order to cut down on the incidence of corporate fraud, Senator Paul Sarbanes and Representative Michael Oxley drafted the Sarbanes-Oxley legislation or SOX prior to 2002” (Peavler, 2014). “The Act compliance required top executives to personally certify corporate accounts in addition to maintaining strict internal-control structure and procedure for financial reporting. Sarbanes-Oxley allowed for criminal penalties if fraud was uncovered” (Amadeo, …show more content…
(n.d.). Retrieved from http://digitalcommons.liberty.edu/cgi/viewcontent.cgi?article=1083&context=honors
Making Finance Work for Africa. (2012). Legal and Regulation Environment. Retrieved from http://www.mfwda.org/legal-reglatory-environment/html
Peavler, R. (2014). The Sarbanes-Oxley Act and the Enron Scandal - Why are they Important? Retrieved from http://bizfinance.about.com/od/smallbusinessfinancefaqs/a/sarbanes-oxley-act-and-enron-scandal.htm
Sweeney, P. (2011, January/February). Will new regulations deter corporate fraud? Retrieved from http://www.alixpartners.de/en/Portals/alix/news-docs/Kelly%20Art.pdf
U.S. Securities and Exchange Commission. (n.d.). The Investor's Advocate: How the SEC Protects Investors, Maintains Market Integrity, and Facilitates Capital Formation. Retrieved from http://www.sec.gov/about/whatwedo.shtml#.U31C8HTnbIU
University of Phoenix. (2014). Sarbanes-Oxley Act of 2002 paper instructions. Retrieved from