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…
Trinity Industries is a successful and properly operating company who never had to restate their earning from previous years. However, Don Collum VP of Trinity Industries, had described the company in 2003 as a candidate for material weakness as defined by Sarbanes-Oxley Act (SOX). The company was deficient in internal control process in the area of documentation and evidence that controls had been performed which could lead to material weakness. Sarbanes-Oxley (SOX) was created in 2002 because of all the accounting fraud that were being reported from publicly held companies. SOX job is to protect investors by preventing financial statement fraud, strengthen internal control, and punishing executives for fraud.…
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…
The SEC’s Dodd-Frank whistleblower program is getting a lot of attention now that the agency is announcing substantial rewards given for information. The SEC does not disclose the name of the company involved, nor the name of the whistleblower who received the reward, however, people still worry about maintaining their anonymity. While the whistleblower program has strong protections against retaliation, such as an employer firing an employee who gave the SEC a tip, there's no protection against gossip and social alienation. Once an individual reports original information about a probable securities law violation, it may take months, or even years, before there is an SEC enforcement action. If no action is taken, or the sanctions against…
Several different guidelines have been put in place to insure that financial reporting is done correctly and accurately. International Financial Reporting Standards or IFRS guidelines where adopted to insure that all companies gather and disclose their information in the same manner. In response to the Enron bankruptcy in late 2001 Sarbanes Oxley Act (SOX) was enacted. SOX reformed; the auditing and accounting procedure which included internal controls and checks and balances, brought into focus oversight responsibility of corporate director and officers making it mandatory to disclose bonuses and special considerations, addressed conflicts of interest and required the chief executives to certify tax documents and financial statements. Where SOX created standard checks and balances with strong auditing/accounting procedures as well as made penalties for fraudulent activates the SEC required disclosure obligations.…
In 1992, while the COSO model was put in place, its real claim to fame came from the subsequent release of the Sarbanes-Oxley Act of 2004. COSO became the most widely used control framework used in managements’ assessment of the internal control environment during this time. However, that is not the model’s sole purpose, as the COSO model is relevant to all companies and institutions when establishing a concrete internal control…
The Dodd-Frank Act and its Consequences for the Financial and Banking System The Great Recession of 2008 brought to light a number of weaknesses in the United States economy that allowed for the stock market crash, housing crisis, and necessitated the bail-out of several important banking companies. In response to the recession and fears of a potential repeat of events, President Barack Obama signed the Dodd-Frank Wall Street Reform Act into federal law in 2010. The act brought with it the most radical financial regulation reform in U.S history since the Great Depression. It completely changed the American financial regulatory environment, affecting the activities of all federal financial regulatory agencies, along with nearly every part of the financial services industry of the U.S.…
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.…
Question Presented Does Leahy’s firing constitute retaliation for purposes of the Dodd-Frank act.? Short Answer Yes, given of the leniency of the common law test and the lack of escalating warnings from her employer, Leahy is likely to sustain a claim of retaliation against Monster Crush under the Dodd-Frank act. Discussion The relevant part of the Dodd-Frank Act reads: “No employer may discharge… a whistleblower in the terms and conditions of employment because of any lawful act by the whistleblower… in providing information to the [SEC] in accordance with the section.”…
In short, Sarbanes Oxley forces institutions to operate their daily financial activities in the most soundness and prudent matter. With this, audits are delivered as transparent as possible and discrepancy diminishes more. This summarize that financial institution should always operate their audit fairly and with no discrepancy whatsoever. It also force executive to be vigilant as to how the organization is being run and if internal control are being follow appropriately. The effects of these two reforms can be view differently.…
The Dodd-Frank Act was a piece of legislature passed by the Obama administration in 2010. This act is formally known as the Dodd-Frank Act Wall Street Reform and Consumer Protection Act. This piece of legislature was a response to the financial crisis of 2008. The Dodd-Frank Act at the time of passing consisted of 2,307 pages, 16 titles and 540 sections of law. This piece of legislation was named after Senator Christopher J. Dodd and Representative Barney Frank who had endorsed this act.…
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…
Senator Paul Sarbanes and Representative Michael Oxley drafted the Sarbanes – Oxley act or SOX. The goal of the act was to protect investors by improving the reliability and the accuracy of what was being reported by companies by: “1. Closing loopholes in recent accounting practices 2. strengthening corporate governance rules 3. increasing accountability and disclosure requirements of corporations, especially corporate execs, and corporation’s public accountants 4.…