A Primer on Sarbanes-Oxley Essay

1198 Words Oct 27th, 2013 5 Pages
A Primer on Sarbanes-Oxley
This paper is an investigation of violations in finance according to Sarbanes-Oxley (SOX) as related to ethics and those influenced by decisions from investment management. I assessed the financial and social business practices of different organizations and identified ethical issues within the businesses that impacted internal and external stakeholders. Research revealed issues and activities that should have been resolved voluntarily prior to SOX’s enactment to meet ethical considerations relative to social and financial performance and the organization’s reputation. Recommendations were made based on studies and scholarly articles implicating the best governance practices organizations should adopt to remain
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Consulting services should have been rendered from a disinterested party in the following areas: (1) bookkeeping and other financial records or statements of the audit client, (2) implementation of financial systems, (3) appraisal and evaluation services, (4) actuarial services, (5) internal audit outsourcing, (6) management and human resource functions, (7) broker or dealer and (8) legal services (Jennings, 2012). Services would have aided in increased compliance and decreased expenses later incurred from penalties and violations.
SOX requires Additional Costs There were changes as a result of the new SOX requirements, imposing additional corporate operating costs on organizations trading under SEC regulations. Maintaining compliance has been costly. Some firms’ rationale for de-listing from SEC regulated exchanges were justified while others fought to avoid compliance with more challenging control standards (Sherman & Chambers, 2009).
Public Company Accounting Oversight Board (PCAOB)
The quasi-governmental entity called the PCAOB, a private sector, nonprofit organization initiated the expenses. The PCAOB oversaw the public organizations’ audit and established audit report standards and rules. Organizations were also held accountable to ensure informative, accurate and independent audit reports were produced to promote investor protection (Jennings,

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