Sarbanes-Oxley Act Research Paper
Sarbanes-Oxley Act
ACC/290
President George W. Bush signed the Sarbanes-Oxley Act (SOX) into law on July 30, 2002 following the Enron and WorldCom accounting scandals. The name of the act comes from the names of its creators: Senator Paul Sarbanes (D-Maryland) and Congressman Michael Oxley (R-Ohio). The Sarbanes-Oxley Act was created to restore the public confidence in both public accounting and publicly traded securities, and to assure ethical business practices through heightened levels of executive awareness and accountability (University of California Santa Cruz, n.d.). With the Sarbanes-Oxley Act came many changes in the accounting practices for businesses, and also changes in internal controls to ensure compliance. …show more content…
The SOX act requires that financial statements must be accurate and contain truthful information. All financial statements must include transactions not on financial statements (University of California Santa Cruz, n.d.). These types of liabilities and obligations were financial commitments that companies weren’t required to report, yet they had an impact on the company’s financial condition. All annual reports must show the scope and adequacy of internal control structures and financial reporting procedures used. An outside accounting firm must report how adequate the internal control structures and financial reporting procedures are. Also, all changes in the company’s financial structure must be reported, and fully disclosed to the public …show more content…
The Sarbanes-Oxley Act has restored the public confidence in public accounting and publicly traded securities, and assures ethical business practices through heightened levels of awareness and accountability. These changes have made the accounting process more in-depth and lengthy for businesses, but in turn financial statements are more accurate. The Sarbanes-Oxely Act holds businesses to a heightened level of accountability for the accuracy of accounting records improving the integrity of the business (D.G. McDermott Associates, LLC.,
ACC/290
President George W. Bush signed the Sarbanes-Oxley Act (SOX) into law on July 30, 2002 following the Enron and WorldCom accounting scandals. The name of the act comes from the names of its creators: Senator Paul Sarbanes (D-Maryland) and Congressman Michael Oxley (R-Ohio). The Sarbanes-Oxley Act was created to restore the public confidence in both public accounting and publicly traded securities, and to assure ethical business practices through heightened levels of executive awareness and accountability (University of California Santa Cruz, n.d.). With the Sarbanes-Oxley Act came many changes in the accounting practices for businesses, and also changes in internal controls to ensure compliance. …show more content…
The SOX act requires that financial statements must be accurate and contain truthful information. All financial statements must include transactions not on financial statements (University of California Santa Cruz, n.d.). These types of liabilities and obligations were financial commitments that companies weren’t required to report, yet they had an impact on the company’s financial condition. All annual reports must show the scope and adequacy of internal control structures and financial reporting procedures used. An outside accounting firm must report how adequate the internal control structures and financial reporting procedures are. Also, all changes in the company’s financial structure must be reported, and fully disclosed to the public …show more content…
The Sarbanes-Oxley Act has restored the public confidence in public accounting and publicly traded securities, and assures ethical business practices through heightened levels of awareness and accountability. These changes have made the accounting process more in-depth and lengthy for businesses, but in turn financial statements are more accurate. The Sarbanes-Oxely Act holds businesses to a heightened level of accountability for the accuracy of accounting records improving the integrity of the business (D.G. McDermott Associates, LLC.,