Preview

What Is The Sarbanes-Oxley Act

Satisfactory Essays
Open Document
Open Document
382 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What Is The Sarbanes-Oxley Act
Sarbanes-Oxley Act
Brandie Cortinas
ENGL 145(D-21)
5-12-14
Ms. Vivian

Abstract
The act enacted in response to financial problems to protect the public from accounting errors and fraud. The act does not specify how a business should store their records; rather, it defines which records are to be stored and for how long they’re going to be stored. The act affects the financial corporations and the IT department. All business records must be saved for more than five years. The consequences for not following the rules are fines, imprisonment, or both. There are several sections to the Sarbanes-Oxley Act that describes the establishment, registration, auditing, quality control, rules, investigations
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Sarbanes Oxley Act Of 2002
    • 187 Words
    • 1 Page

    Sarbanes Oxley Act Of 2002

    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
    Read More
  • Best Essays

    Sarbanes Oxley Act
    • 3132 Words
    • 13 Pages

    Sarbanes Oxley Act

    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
    Read More
  • Satisfactory Essays

    Sarbanes-Oxley Act
    • 534 Words
    • 2 Pages

    Sarbanes-Oxley Act

    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
    Read More
  • Better Essays

    The Sarbanes-Oxley Act Case Study
    • 1488 Words
    • 6 Pages

    The Sarbanes-Oxley Act Case Study

    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
    Read More
  • Satisfactory Essays

    Sarbanes-Oxley Act
    • 558 Words
    • 3 Pages

    Sarbanes-Oxley Act

    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
    Read More
  • Satisfactory Essays

    Sarbanes-Oxley Act
    • 504 Words
    • 3 Pages

    Sarbanes-Oxley Act

    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
    Read More
  • Powerful Essays

    Sarbanes-Oxley
    • 1874 Words
    • 8 Pages

    Sarbanes-Oxley

    The Sarbanes-Oxley Act applies to all public companies in the U.S. and international companies that have registered equity or debt securities with the Securities and Exchange Commission as well as the accounting firms that provide auditing services to them. The Act mandated a number of reforms to enhance corporate responsibility, enhance financial disclosures, combat corporate and accounting fraud, and created the "Public Company Accounting Oversight Board," also known as the PCAOB, to oversee the activities of the auditing profession. The Sarbanes-Oxley Act also created new penalties for acts that were unethical, negligent or fraudulent. It hoped to change how corporate boards and executives interacted with each other and with corporate auditors. Its aim is to remove the defense/excuse of "I wasn't aware of or didn't know about the financial issues regarding the company" from CEOs and CFOs. It aims to hold management accountable for the accuracy of the financial statements in order to protect the shareholders and others that rely on those financial statements. The Act also specifies new financial reporting responsibilities,…

    • 1874 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Sarbanes-Oxley Act of 2002
    • 1496 Words
    • 6 Pages

    Sarbanes-Oxley Act of 2002

    Sarbanes-Oxley Act of 2002 is the most far-reaching change in organizational control and accounting regulations since the Securities and Exchange Act of 1934. The new law made securities fraud a criminal offense and made more strict penalties for corporate fraud. The law now requires top executives to sign off on their firms financial reports, and they risk fines and long jail sentences if they…

    • 1496 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Law & Regulatory: What Does the Sarbanes-Oxyel Act Have
    • 8928 Words
    • 36 Pages

    Law & Regulatory: What Does the Sarbanes-Oxyel Act Have

    A RESEARCH PROPOSAL FOR THE FULFILLMENT OF A DIPLOMA COURSE IN THE UNIVERSITY OF ……….…

    • 8928 Words
    • 36 Pages
    Powerful Essays
    Read More
  • Good Essays

    Primer on the Sarbanes-Oxley Act 2002
    • 766 Words
    • 4 Pages

    Primer on the Sarbanes-Oxley Act 2002

    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
    Read More
  • Better Essays

    The Sarbanes-Oxley Act
    • 1327 Words
    • 6 Pages

    The Sarbanes-Oxley Act

    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
    Read More
  • Better Essays

    The Sarbanes-Oxley Act
    • 1115 Words
    • 5 Pages

    The Sarbanes-Oxley Act

    The Sarbanes-Oxley act arose as a result of several corporate accounting scandals that became public in late 2001 and early 2002. These scandals involved many publicly traded companies such as Enron, which “boosted profits and hid debts totaling over $1 billion by improperly using off-the-books partnerships”; WorldCom, which “overstated…

    • 1115 Words
    • 5 Pages
    Better Essays
    Read More
  • Better Essays

    Sarbanes Oxley Act
    • 1338 Words
    • 6 Pages

    Sarbanes Oxley Act

    Fraudulent activity and accountants being held responsible for their actions was something that the government thought was important to make sure there was no falsification and fraud happening behind closed doors so to ensure that ethical standards were met the Sarbanes Oxley Act was brought to legislature. This Act was enacted in 2002 which…

    • 1338 Words
    • 6 Pages
    Better Essays
    Read More
  • Better Essays

    The Sarbanes-Oxley Act
    • 2083 Words
    • 9 Pages

    The Sarbanes-Oxley Act

    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
    Read More
  • Satisfactory Essays

    Sarbanes Oxley Act
    • 380 Words
    • 2 Pages

    Sarbanes Oxley Act

    Sarbanes–Oxley Act of 2002 is a United States federal law that mandated a number of reforms to increase corporate responsibility, enhance financial disclosures and prevent corporate and accounting fraud (Shakespeare, 2008). The laws are a set of rules that guides the conduct in society. Legal rules and ethical decisions are similar but differ on certain points. Sarbanes Oxley was created with new standards for corporate accountability as well as new penalties for acts of wrongdoing.…

    • 380 Words
    • 2 Pages
    Satisfactory Essays
    Read More

Related Topics