Sarbanes-Oxley Act Analysis

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1. Sarbanes-Oxley Act (SOX) was a law passed to try and fix the problems that allowed for fraud in many corporations. There were seven factors that motivated the passing of SOX. The first was auditor’s conflicts of interest. Before the passing of the act auditing firms were self-regulated and preformed consulting work for companies they were supposed to be auditing creating profit. (Wikipedia, 2014). The next factor was the failure of these company’s Boards of Directors as well as executive compensation. Many of the Boards of Directors, such as Audit Committees, didn’t understand their responsibilities or didn’t do their jobs at all and executives were being compensated in stock options that were large bonuses which caused managers to be pressured …show more content…
During 2002 after the passing of the law the number of companies that deregistered tripled. (Wikipedia, 2014) Another problem with the act is the expenses it costs companies. In 2004 companies spent an average of $5.1 million because of SOX. (Wikipedia, 2014) I think the law is both good and bad for US Companies. I think that the law is good in the fact that it cleaned up a lot of the corruption in corporation or at least the area the act covers. When analysts and auditing firms are able to make more money outside of their jobs it encourages to make unethical decisions. The same when executives are rewarded with large bonuses. I also thinking that the act was bad for US companies and that maybe these problems should have been dealt with in a different manner as there was a decrease in the number of companies that registered in the US Stock Exchange and there were more companies registered in the UK stock exchange in 2008. (Wikipedia, 2014). The amount cost of SOX definitely discourages small firms and foreign firms from entering the US stock …show more content…
Hackers and viruses are both security threats to a business’s network as they are both capable of stealing information. The difference is that a hacker is an expert in technology who uses their knowledge to break into computers and computer networks for either profit or motivation while a virus is software written with malicious intent to cause annoyance or damage. (Baltzan, 2013) There are several different types of hackers. Two of the most common are black-hat hackers and white-hat hackers. The difference between the two types is that black-hat hackers break into others computer systems to steal and destroy information while what-hat hackers work for system owners to find these vulnerabilities. (Baltzan, 2013). Viruses can be transmitted a couple different ways as there are different types of viruses, as well. Most viruses are transmitted through software, attachments and downloadable files, they can also spread themselves from computer to computer and can also be preplanned for future attacks. (Baltzan, 2013) The news recently included how searching for some celebrities could lead to websites that cause spyware to be downloaded . McAfee listed Jimmy Kimmel as the top most dangerous celebrity to search. (Matyszcsyk, 2014) This could impact individuals, because many people like to look up news on their favorite celebrities increasing the likelihood the spyware can be

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