History of Sox
History of Sarbanes Oxley and the Reasons for Enactment
Virginia Knight
Student ID: 6892460166
Accounting Capstone
Senior Seminar in Accounting
ACC 499 006016 Spring 2009
Submitted to: Professor Tee Thein
June 19, 2009
Abstract:
In 2002 the Sarbanes-Oxley Act was passed. This is a mandatory act that all organizations, large and small, must comply with. This legislation introduced major changes to the regulation of financial practice and corporate governance. There are eleven titles to the Sarbanes-Oxley Act. The act is named after its main architect, Representative Michael Oxley and Senator Paul Sarbanes. Former President Bush is quoted saying that it is intended to “deter and punish corporate and accounting fraud and corruption, ensure justice for wrongdoers, and protect the interest of workers and shareholders”.
Table of Contents:
Page
Abstract . . . . . . . . . . . . . . . . . . . . . . 2
Chapter 1 . . . . . . . . . . . . . . . . . . . . . 5 Introduction . . . . . . . . . . . . . . . . . 5
Chapter 2 . . . . . . . . . . . . . . . . . . . . . . 7 Eleven Titles of SOX . . . . . . . . . . . . . . 7 1. PCAOB . . . . . . . . . . . . . . . . . . . . . . 7 2. Auditor Independence . . . . . . . . . . . . . . . 8 3. Corporate Responsibility . . . . . . . . . . . . . 8 4. Enhanced Financial Disclosures . . . . . . . . . . 9 5. Analyst Conflicts of Interest . . . . . . . . . . . 9 6. Commission Resources and Authority . . . . . . . . . 10 7. Studies and Reports . . . . . . . . . . . . . . . . 10 8. Corporate and Criminal Fraud Accountability . . . . 10 9. White Collar Crime Penalty Enhancement . . . . . . . 11
10. Corporate Tax Returns . . . . . . . . . . . . . . . 11
11. Corporate Fraud Accountability . . . . . . . . . . . 11
Chapter 3 . . . . . . . . . . . . . . . . . . . . . . 13 An Accountant’s View . . . . . . . . . . . . . . 13 Internal Control Scorecard . . . . . . . . . . . . 17
Virginia Knight
Student ID: 6892460166
Accounting Capstone
Senior Seminar in Accounting
ACC 499 006016 Spring 2009
Submitted to: Professor Tee Thein
June 19, 2009
Abstract:
In 2002 the Sarbanes-Oxley Act was passed. This is a mandatory act that all organizations, large and small, must comply with. This legislation introduced major changes to the regulation of financial practice and corporate governance. There are eleven titles to the Sarbanes-Oxley Act. The act is named after its main architect, Representative Michael Oxley and Senator Paul Sarbanes. Former President Bush is quoted saying that it is intended to “deter and punish corporate and accounting fraud and corruption, ensure justice for wrongdoers, and protect the interest of workers and shareholders”.
Table of Contents:
Page
Abstract . . . . . . . . . . . . . . . . . . . . . . 2
Chapter 1 . . . . . . . . . . . . . . . . . . . . . 5 Introduction . . . . . . . . . . . . . . . . . 5
Chapter 2 . . . . . . . . . . . . . . . . . . . . . . 7 Eleven Titles of SOX . . . . . . . . . . . . . . 7 1. PCAOB . . . . . . . . . . . . . . . . . . . . . . 7 2. Auditor Independence . . . . . . . . . . . . . . . 8 3. Corporate Responsibility . . . . . . . . . . . . . 8 4. Enhanced Financial Disclosures . . . . . . . . . . 9 5. Analyst Conflicts of Interest . . . . . . . . . . . 9 6. Commission Resources and Authority . . . . . . . . . 10 7. Studies and Reports . . . . . . . . . . . . . . . . 10 8. Corporate and Criminal Fraud Accountability . . . . 10 9. White Collar Crime Penalty Enhancement . . . . . . . 11
10. Corporate Tax Returns . . . . . . . . . . . . . . . 11
11. Corporate Fraud Accountability . . . . . . . . . . . 11
Chapter 3 . . . . . . . . . . . . . . . . . . . . . . 13 An Accountant’s View . . . . . . . . . . . . . . 13 Internal Control Scorecard . . . . . . . . . . . . 17
References: Corporate Fraud Accountability The following describes Sections 1102, 1103 and 1105 of Title XI: June 19, 2009 Research File Memorandum June 19, 2009 Virginia Knight An Article by Parles, Lisa McCauley-O’Sullivan (2007) Retrieved from http://www.entreprenuer.com Shining the Light on the Sarbanes-Oxley Act Retrieved on June 17, 2009 from http://www.grgc.com Introduction to Sarbanes-Oxley Retrieved on June 9, 2009 from