Sarbanes–Oxley Act

Organizations also have to focus on the corporate social responsibility to serve different stakeholders, for example, clients, employees, suppliers, groups, and ecological and human rights advocates, whose interests are attached to the organization's execution. A corporate social responsibility is a business practice that involve the organizations making decisions that concern society benefit. Companies should provide customers with safe and high quality products that are fairly priced and easy…

3: Sarbanes-Oxley Act of 2002 3.1 Introduction The bankruptcy of the one of the best companies in the United States, Enron, resulted in big shock and decrease in the public confidence. After Enron, to improve the public confidence of the United States people and the rest of the world, and also to strengthen weaknesses in the accounting profession, there had to be something done. The introduction of the Sarbanes-Oxley Act was then the key to address all these matters. Passing of Sarbanes-Oxley…

plan is for general management, the Board of Directors would be involved only if their charter required it. However, if it is a corporate-wide plan, they will probably be briefed by the CEO and VP Human resources. Ethical Considerations The Sarbanes-Oxley Act does not directly address incentive plan. However, companies in general want to improve ethical reputation, recordkeeping and accounting practices to increase their transparency of all expenditures. Therefore companies are looking for…

The introduction of the Sarbane-Oxley Act and its modification after the 2007-2008 recessions has helped many businesses grow and remain sustainable; the Act encourages accountability, and disclosure of information to promote effective and correct decisions, which can steer organisation growth (Rikhardsson & Juhl-Christensen 2008). The collapse of Enron will forever be a remembered in the business world, since this case acts as lesson why it is essential to conduct business in a professional…

statement fraud occurs in many ways which results into understatement of liabilities or expenses and overstatement of revenue and assets. However, corporations hire forensic experts to do the fraud investigation. After the 2002 Enron scandal, the Sarbanes Oxley act required that a publicly traded company to have an audit committee with a financial expert. The CPA firm does the auditing of the financial statements and makes sure every…

near unanimous vote what is considered by many to be “the most comprehensive financial reporting legislation since the Securities Acts of 1933 and 1934” (Louwers at al., 2015). The Sarbanes-Oxley Act of 2002, commonly referred to as “SOX”, was named after its two main creators U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. The Sarbanes-Oxley Act has a goal “To protect investors by improving the accuracy and reliability of corporate disclosures…” and was passed with the…

statement fraud was pretty common. Various firms were engaged in financial fraud without thinking that the investors, and other stakeholders rely on those financial statements and the opinion of the auditor on those financial statements. The Sarbanes-Oxley Act was created because of the multiple accounting scandals of WorldCom & Enron in July 30, 2002. Because of that the investors lose billions of dollars, this negatively impacted financial stock market. Fraudulent accounting transaction and…

Sarbanes-Oxley Act Impact on Businesses When determining to transition from a private company to a public company there are many factors that must be considered. There are decisions that need to be made determining whether enough capital can be raised. The economic impact of the transition in some cases will be the deciding factor in this determination. There are both advantages and disadvantages to either side and companies must factor in all characteristics when making such an integral…

To: Professor Holborn From: Julion Price Re: Does the destruction of grouper that is more than 20 inches violate the Sarbanes-Oxley Act? Date: December 3, 2014 FACTS In 2007, defendant John L. Yates set out with his crew to go fishing in the Gulf of Mexico. A few days later, Officer Jones boarded their ship and examined the fish they were catching. He noticed that 72 of the fish were smaller than 20 inches. Federal fishing laws require that these fish be bigger than 20 inches before being…

The Sarbanes Oxley Act of 2002 which was also called SOX was published by the Congress in 2002 to protect investors’ interest (SOX, 2002). After the enactment of SOX, corporate financial reporting was more strict and normative. However, there were a lot of accounting scandals before 2002. And the Enron scandal attracted the most public attention of all the scandals. Enron was created in 1985 and was one of the largest energy companies around the world. However, in 2001 and 2002 the company was…