1. Why did Congress enact the Sarbanes-Oxley Act? What are the major provisions and benefits of the Act? Congress enacted the Sarbanes-Oxley Act in order to protect investors. This was done by improving the accuracy and reliability of corporate disclosures made by in accordance with the securities laws.…
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.…
Some critics considered SOX as revolutionary in terms of the attitudinal and cultural change within the organizations. The board of directors of the company are more empowered to oversight the management because of the serious liability SOX has imposed to them. This law has even promote…
Discussion One The court decided that the members may be removed on the Securities and Exchange Commission will unlike how the Sarbanes-Oxley Act. The act also gives SEC power to remove members on a good cause only. The court however termed this as violation of the constitution. The court decision that the SEC may remove members at their own will violate the validity of the members.…
Student Name Hand-In Assignment 3 1. Using the course materials and online resources, explain the difference between the Sarbanes-Oxley Act and the Dodd-Frank Act. What does each act hope to achieve? The Sarbanes-Oxley Act set new and expanded current requirements for public company boards, management and public accounting.…
Sarbanes-Oxley Act, Section 301: Public Company Audit Committees, is created to address systemic and structural weaknesses that affecting the US capital markets due to failures of audit effectiveness and corporate financial responsibility that could potentially “threatened the reputation of those markets for integrity (Tsacoumis, S, Bess, S, and Sappington, A, 2003).” Section 301 provided appropriate regulatory authority of the audit committee the power to overseeing the accounting and financial reporting processes of the issues and financial reporting processes of the issuer and audits of the financial statements of the issuer (Public Law, 2002). Under SOX, audit committees shall be members of the board of directors of the issuer and must…
In 2002, Congress signed the Sarbanes-Oxley Act (SOX) in response to several notorious corporate scandals, including those at Enron/Worldcom. The piece of legislation was aimed to hold corporate officers personally liable and to rebuild public confidence in the corporate sector. SOX, “requires violations of securities laws or breaches of fiduciary responsibility to be reported to either the chief legal officer or CEO of the company by-house attorneys or outside counsel (Reed, & Bogardus, 2015).” While most provisions of SOX are only applicable to public businesses, at least two criminal provisions apply to nonprofit businesses: whistleblower protection and forbidding the destruction, alteration, or concealment of documents or the impediment of investigations. Section 806 created a new federal anti-retaliation protection for corporate whistleblowers.…
In most states, the law assumes that private sector workers are hired "at-will. The employment-at-will doctrine provides that mutually the boss and the employee can end the service relationship at any time minus notification or cause. Such means the manager has the mandate to dismiss the employee any time for any reason or no reason at all or a bad motive, provided the reason is not unlawful - even if one’s performance has been exceptional (Muhl, 2001). On the other hand, an employee can resign from a job for any reason any time. He or she cannot be forced to work for the boss.…
SARBANES-OXLEY 1- Sarbanes-Oxley was an act that was passed by U.S Congress in 2002 in order to protect investors from fraud. The Sarbanes-Oxley takes its name after the U.S senators Paul Sarbanes and U.S representative Michael G. Oxley. 2- The establishment of the Public Accounting Oversight Board was the result of this act.…
Ethics, broadly defined, is the a set of values or principles established by society for its betterment. Many of these values and principles are incorporated into culture and law. Organizations today integrate ethics into the foundation of their businesses in order to augment the professional value and trustworthiness of the their enterprise. Both public and private companies are expected to uphold certain ideals and internal controls for the benefit of their stakeholders. Operating with high virtues dictates an enterprise’s true value.…
The Sarbanes-Oxley Act(SOX), This reform was approved to help regulate the financial reporting and audit quality and it needs to be performed by an independent auditor or…
The Dodd-Frank Act is to promote the financial stability of the United States by improving accountability and transparency in the financial system to end “too big to fail” to protect the American taxpayer by ending bailouts to protect consumers from abusive financial services practices, and for other purposes (CFTC.gov, ND). The current state of the executive order that President Trump has initiated assess the federal independent financial regulatory agencies that Dodd-Frank administer. In 2008 the United States experience a financial catastrophe that affected unemployment, mortgage industry, and financial institutions. Laws regulating business conduct are passed because some stakeholders believe that business cannot be trusted to do what is right in certain areas, such as consumer safety and environmental protection (Ferrell, Fraerich, & Ferrell, 2013). This was shown with the financial crisis that happens in 2008 with the mortgage industry regarding the subprime loans.…
Part of the Dodd-Frank Act is the agency entitled Consumer Financial Protection Beurea (Ferrell, Fraedrich, & Ferrell, 2013). The focus of this agency is to make sure banks, lenders, and other financial organizations treat consumers fairly (CFPB, 2017). Most consumers do not understand all the implications that are involved in credit and lending markets which can lead to decisions that are made without the consumer being fully informed of the consequences. These consequences can have a societal impact when the borrowers can no longer meet their contractural agreement. “September and October of 2008 was the worst financial crisis in global history, including the Great Depression,” Mr. Bernanke is quoted as saying in the document filed with the…
In 2002, the Sarbanes-Oxley (SOX) Act was passed by congress and signed into law by President George W. Bush. SOX was written as a response to several major accounting scandals that occurred at large companies (including Enron, WorldCom, and Tyco) in the early 2000’s. These scandals forced capital providers and the general public to question the judgement of public accounting firms as well as at the overall reliability of the financial reporting and audit process. The requirements included in SOX were designed to improve audit quality, increase the reliability of financial reporting, bolster corporate governance, and re-establish public and investor confidence in the financial reporting process. Some of the most impactful aspects of the Act…
In this case, the corporate governance, the rules/laws used by the company are controlled, was lacking severely, laws were broken by the use of fraudulent statements and theft, all of which are unethical. Furthermore, internal controls, are dependent on the competency of the system or individual. Further, internal controls in place were easily…