Preview

The Dodd-Frank Act: An Analysis

Good Essays
Open Document
Open Document
321 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Dodd-Frank Act: An Analysis
However, to comply with the Dodd-Frank act is not without obstacles for companies such as Apple, Nokia, Samsung, HTC, LG, and Sony. To track the “3TG” materials (tungsten, tin, tantalum and gold) used in their products is a difficult and expensive process. According to Chris Bayer, an independent research consultant who specializes in conflict minerals, “There are these cultural or practicality issues that go beyond just the fact that Congo doesn’t have passable roads. There’s limitations or constraints wherever you look,” (as cited in Winsor, 2014). Furthermore, the minerals go through a variety of smelters, manufacturers and distributors in distant countries before they end up in a phone (Luckerson, 2014; see also Propper & Knight, 2013)

You May Also Find These Documents Helpful

  • Good Essays

    The Sarbanes-Oxley Act of 2002 is mandatory. All large and small organizations must comply with this act. The legislation came into existence in 2002 as a result of a number of corporate and accounting scandals and introduced major changes to the regulation of financial practice and corporate governance. The main architects of the acts were Senator Paul Sarbanes and Representative Michael Oxley. The SOX act protects the shareholders from forged representations in corporate financial statements. The financial information on which the investors rely should be truthful and its accuracy must be verified by an independent third party.…

    • 187 Words
    • 1 Page
    Good Essays
  • Best Essays

    Sarbanes Oxley Act

    • 3132 Words
    • 13 Pages

    Financial reporting has been dissected over and over again by legislation. The U.S. Securities and Exchange Commission (SEC) hold the key to providing protection and integrity when companies are submitting their financial statements. Although their mission is to provide order and efficiency for financial markets, insidious plans are still developed by companies which ultimately result in turmoil to the economy. To provide a safeguard to investors, the Sarbanes-Oxley Act (SOX) was passed by congress in 2002, which was constructed because of fraudulent acts of well-known companies such as Enron. Before the SOX was inaugurated, two sets of accounting rules were used as guides for CPA firms.…

    • 3132 Words
    • 13 Pages
    Best Essays
  • Satisfactory Essays

    Sarbanes-Oxley Act

    • 534 Words
    • 2 Pages

    The Sarbanes-Oxley Act of 2002, often abbreviated as SOX, is a legislative act passed by Congress in response to the Enron and WorldCom financial scandals. The primary purpose of SOX is to protect shareholders from errors or fraudulent reporting by the company they have invested in. The Sarbanes-Oxley act is enforced by the Securities and Exchange Commission, a department dedicated to ensuring compliance to SOX from all firms, and is also responsible for revising provisions of the act in order to keep it current and up to date.…

    • 534 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    Senator Paul Sarbanes and Representative Michael Oxley drafted the Sarbanes-Oxley Act or "SOX" in 2002 in order to curb the incidence of corporate fraud. The “Act” was signed into law on July 30th 2002 by President George W. Bush with the express purpose of restoring public confidence in the financial markets; and after enacting “the Act”, neither Sarbanes or Oxley would run for re-election in the 2006 elections (Jahmani & Dowling, 2008). The intent of the SOX Act was to protect investors, and any other stakeholders in a company, by improving the validity and reliability of corporate disclosures, such as financial statements and earnings reports, pursuant to existing securities laws and regulations governing publically traded companies (Kessel, 2011). The SOX Act holds corporate Chief…

    • 1488 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Sarbanes-Oxley Act

    • 558 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the highprofile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long. The legislation not only affects the financial side of corporations, it also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for non-compliance are fines, imprisonment, or both. IT departments are increasingly faced with the challenge of creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation. FAQ: What is the impact of Sarbanes-Oxley on IT operations? The following sections of Sarbanes-Oxley contain the three rules that affect the management of electronic records. The first rule deals with destruction, alteration, or falsification of records.…

    • 558 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    The Dodd-Frank Legislation also known as the Dodd-Frank Wall Street reform and consumer protection act or the Dodd-Frank Act. The Dodd-Frank Act was introduced in the House of Representatives by Financial Services Committee Chairman Barney Frank, and by the Senate Banking Committee former Chairman Chris Dodd and there for named after the two men. The Dodd-Frank represents the most comprehensive financial regulatory reform measures taken since the Great Depression; in simplest terms the Dodd-Frank Act is a law that places major regulations on the financial industry. Dodd-Frank grew out of the Great Recession with the intention of preventing another collapse of major financial institutions in the U.S. The Dodd-Frank also enforces the consumer protect act which is put in place to protect barrowers from abusive barrowing and puts regulations on banks that practice these bad habits.…

    • 1640 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    Sarbanes-Oxley Act

    • 504 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 is an act passed by U.S. Congress in 2002 to protect investors and the general public from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act authorized strict modifications to improve financial disclosures from corporations and to prevent accounting fraud. This law was passed after a couple of big the accounting scandals like Enron, Tyco, and WorldCom shook investor assurance in financial statements and required an overhaul of regulatory standards. The act is administered by the Securities and Exchange Commission, which sets deadlines for compliance and publishes rules on requirements. It is not a set of business practices and does not specify how a business should store records; rather it tells more which records are to be stored and for how long in case of hearings.…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    In the beginning years of the new century a series of huge corporate frauds predominated the business sections and front pages of dominant newspapers, shaking public confidence in the integrity of corporate America. Those scandals also raise serious questions about the integrity, acuity and prudence of business leaders and accountants who structure and document business transactions, approve required financial disclosures, and, in the case of accountants, certify the accuracy of required reports (Enrione, Mazza, & Zerboni, 2006).…

    • 766 Words
    • 4 Pages
    Good Essays
  • Better Essays

    The Sarbanes-Oxley Act

    • 1327 Words
    • 6 Pages

    The Sarbanes-Oxley Act of 2002(SOX which is also known as the Public Company Accounting Reform and Investor Protection Act was enacted in July, 30, 2002 as a prompt response to the financial crimes scandals (Adelphia, Enron, WorldCom, Peregrime Systems , Arther Anderson and Tyco International). SOX establishes new, stricter standards for all US publicly traded companies. It does not apply to privately companies. The Act is administered by the Securities and Exchange Commission (SEC), which deals with compliance, rules and requirements. The Act also created a new agency, the Public Company Accounting Oversight Board, or PCAOB, which is in charge of overseeing, regulating, inspecting, and disciplining accounting firms in their roles as auditors of public companies. In my opinion, the benefits of the act cant be able to overcome the frustration and the cost of it.…

    • 1327 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    The Dodd-Frank Reform

    • 348 Words
    • 2 Pages

    The Dodd-Frank Reform was passed in 2010. The purpose of this legislation is to change risky lending practices. One of the causes of the 2007 financial crisis was the high volume of high risk loans that were being bought and sold by financial institutions. The Dodd-Frank Reform would prevent financial institutions from issuing predatory and high risk loans.…

    • 348 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    The Sarbanes-Oxley Act

    • 1115 Words
    • 5 Pages

    The Sarbanes-Oxley act was enacted in 2002 following corporate financial scandals like those involving Enron and WorldCom. The act was created in order to combat corporate accounting fraud and enhance the quality of corporate financial disclosures. To accomplish this, the act created the "Public Company Accounting Oversight Board", or PCAOB to oversee audits and compliance.…

    • 1115 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Sarbanes Oxley Act

    • 1338 Words
    • 6 Pages

    The Sarbanes-Oxley is a U.S. federal law that has generated much controversy, and involved the response to the financial scandals of some large corporations such as Enron, Tyco International, WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate and covers and sets new performance standards for boards of directors and managers of companies and accounting mechanisms of all publicly traded companies in America. It also introduces criminal liability for the board of directors and a requirement by the SEC (Securities and Exchanges Commission), the agency responsible for regulating the securities market in the United States. Supporters of this law argue that the legislation was necessary and useful, while critics believe it will cause more economic damage than it prevents.…

    • 1338 Words
    • 6 Pages
    Better Essays
  • Better Essays

    Dodd Frank Act

    • 2542 Words
    • 11 Pages

    Since the financial crisis of 2008 many things have changed in the ways of how our government works, the way people run a business, and even the way people live their lives. Although some people may blame these events on former President George W. Bush or current President Barack Obama, much of the changes that have occurred have been from a single act, the Dodd-Frank Act. The Dodd-Frank Act, which was implemented after the financial crisis that occurred in 2008, is designed to keep businesses and firms honest.…

    • 2542 Words
    • 11 Pages
    Better Essays
  • Better Essays

    The Sarbanes-Oxley Act

    • 2083 Words
    • 9 Pages

    Chapter 5: the Sarbanes- Oxley act of 2002 involved the public anger that started when Enron, WorldCom, and other big companies scandals. This is when there was support for white collar crime when it came to accounting standards. Under the law of federal sentencing rules to make sure that white collar criminals are being punished. (Barnes, 2012). 1. For someone to alter or get rid of documents and there intensions to obstruct or effect the crime/case. 2. The CEO (chief executive officer) and the CFO (chief financial officer) must clarify that repots have been submitted to the SEC (securities and exchange commission.) it is a crime if the CEO and CFO make a report that is false. 3 CEO and CFO must reimburse the company for any raises and if…

    • 2083 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    The Dodd-Frank Act

    • 1636 Words
    • 7 Pages

    This topic of discussion focuses on the Dodd-Frank Act and how it came into existence? Those who were affected by the law, to include the Acts forced regulations on all U.S. financial institutions, private hedge funds, government controlling, compliances, and its protection. The Dodd-Frank Wall Street Reform and Consumer Protection Act, now called The Dodd-Frank Act is a U.S. federal mandated law, one in which was created by the Obama administration and signed into federal law on July 21, 2010. The Act was implemented partly due to the financial crisis of 2008. According to USA government “The Act was created to place regulations on the financial industry that government controls.” The agency created was the Financial Stability Oversight Council,…

    • 1636 Words
    • 7 Pages
    Powerful Essays