Preview

The Pros And Cons Of The SOX Act

Good Essays
Open Document
Open Document
265 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Pros And Cons Of The SOX Act
Several of many crucial accounting scandals were the Enron financial criminal activities caused the company to filed bankruptcy in 2001. Their financial misconduct led to the company being charged and found guilty of illegal accounting practices. These scandals and actions reported many inaccurate information. The problems were not at the lower level, but the top executive levels were the problems. Due to many of these unethical financial activities, the stock financial reporting was inaccurate. The SOX Act was constructed to improve and build on the public trust. The goal is to gain the confidence and restore the integrity of the financial market. The public wanted integrity and honest of the government and the honesty and integrity of corporate
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Sarbanes-Oxley Act of 2002 Acc 290
    • 433 Words
    • 2 Pages

    Sarbanes-Oxley Act of 2002 Acc 290

    The Sarbanes-Oxley Act (SOX) originated on July 29, 2002 due to fraudulent bookkeeping practices and misleading financial reports from large corporations. These practices created a number of accounting scandals, which resulted in this in the government creating such an act. The purpose was to prevent and punish corporate corruption and, along the way, try to repair investor confidence. The law was passed by congress after well-known companies (Enron, Peregrine Systems and Tyco International, to name a few) caused great humiliations to its investors, which in result cost them billions of dollars. The share prices of the affected companies collapsed, which shook public confidence in the nation’s securities markets.…

    • 433 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Sarbanes Oxley Memo
    • 1426 Words
    • 6 Pages

    Sarbanes Oxley Memo

    History of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response to the high profile financial scandals, such as seen with Enron and WorldCom. The purpose of this act is to protect shareholders and the general public from accounting errors and fraudulent business practices. The Sarbanes-Oxley Act introduced stringent new rules to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, Sarbanes-Oxley defines which records are to be stored and for how long.…

    • 1426 Words
    • 6 Pages
    Powerful 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
  • Good Essays

    The Sarbanes-Oxley Act Summary
    • 492 Words
    • 2 Pages

    The Sarbanes-Oxley Act Summary

    The Sarbanes-Oxley Act (SOX) was enacted in 2002 as a response to the accounting scandals in the early 2000s. Numbers of major corporate and accounting scandals, such as Enron, Tyco International, WorldCom, and others, shook public confidence and cost investors billions of dollars when companies collapsed. The Sarbanes-Oxley Act is a federal law that set new standards for the United States public company boards, management, and public accounting firms ("Sarbanes–oxley Act", 2013). The two key provisions of the Sarbanes-Oxley Act are section 302 and section 404. According to Section 302, top management within a firm must certify individually the accuracy of financial information ("Sarbanes-Oxley Act Section 302", 2003). According to the Section 404, it requires that management and auditors establish internal controls and reporting methods on the adequacy of those controls. Financial issues are required to be published in a company’s annual reports. In addition, penalties for fraudulent financial activity are much more severe. A CEO or CFO who…

    • 492 Words
    • 2 Pages
    Good Essays
    Read More
  • Powerful Essays

    Acc 290 Week 5 Analysis
    • 470 Words
    • 2 Pages

    Acc 290 Week 5 Analysis

    The Sarbanes-Oxley Act created problems in the business environment during the first year, auditing cost rose to staggering proportions, and many public firms went private as a way of avoiding the cost of complying with this law. The SOX Act was intended to improve corporate governance an increase transparency of financial audits. The act was to restore public confidence in Corporate America, change the way accountants did business, set standards, and enforce stricter criminal penalties.…

    • 470 Words
    • 2 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Pros And Cons Of Dodd Frank Reform
    • 1644 Words
    • 7 Pages

    Pros And Cons Of Dodd Frank Reform

    The Dodd-Frank Reform The financial crisis of 2008 created one of the most uncertain times in the United States’ economy history. Not only did it affect thousands of businesses, but also consumer’s confidence dropped to levels not seen since the great depression. After the failure to address the issues created by the banks, the economy took a turn for the worse. The only way to move the economy forward was to bailout those banks and businesses that were essential to the US economy.…

    • 1644 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Sarbanes-Oxley
    • 1874 Words
    • 8 Pages

    Sarbanes-Oxley

    The Sarbanes-Oxley Act of 2002 was created by sponsors U.S. Senator Paul Sarbanes(D-MD) and U.S. Representative Michael G. Oxley (R-OH) in response to very public corporate fraud and accounting scandals. In a seemingly short period of time, Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom all collapsed. The majority of these scandals resulted from the inaccurate reporting of financial transactions. The financial statements of these organizations were so gravely misrepresented and misstated that once the organizations' records were presented fairly, it caused the total collapse of the company. As a result of these scandals, investors lost billions of dollars when the share prices collapsed, and the public lost confidence in the nation's securities markets and the auditor who were supposed to protect the public's interest.…

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

    Article Review: Sox Act of 2002
    • 456 Words
    • 2 Pages

    Article Review: Sox Act of 2002

    What is the Sarbanes-Oxley Act of 2002 and what is its purpose? The Sarbanes-Oxley Act of 2002 was designed and passed to protect investors of corporations from the possible acts of fraudulent accounting activities by corporations. The SOX Act’s purpose is to commend and force ethical business practices among businesses across all industries. The overall goal was to protect financial records that organizations keep to help further protect against any and all accounting fraud. Major corporations like ENRON, TYCO, and WORDLCOM had to deal with major issues with reporting improper accounting records to investors and the resulting consequences of their actions. The scandals caused by these corporations forced the U.S. Congress to implement the SOX Act and enforce rules that would penalize any wrongdoingon the part of the offending company. Several measures were enforced in the SOX Act of 2002.…

    • 456 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Article Review - Sox Act
    • 686 Words
    • 3 Pages

    Article Review - Sox Act

    Hunter’s article examines how the Sarbanes-Oxley Act (SOX Act) is too stringent and gives too much power over companies to governing bodies, i.e. the Public Company Accounting Oversight Board (PCAOB) (Hunter, 2007). It discusses how the SOX Act is unfair to domestic and foreign and small and large companies, their shareholders, and the public. The piece explains how the Act may compel some companies to use unethical actions to conduct business and prevent accruing penalties (Hunter, 2007).…

    • 686 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Pros And Cons Of Bill C-51
    • 100 Words
    • 1 Page

    Pros And Cons Of Bill C-51

    Even though the bill C-51 is more likely a violation of freedom and can be used as a power of dictatorship, but the purpose of Harper’s government were good: protect Canadian residents from the danger of terrorism, by setting certain groups of people on the watching list, it could reduce the rate of terrorism and crime activities. So people could living in a society which is safer, more peaceful.…

    • 100 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Satisfactory Essays

    New York Legislation Pros And Cons
    • 317 Words
    • 2 Pages

    New York Legislation Pros And Cons

    This primary source document is from an article from Harper’s Weekly. Harper’s Weekly was a very important newspaper from New York during the Civil War. The article was titled “New York Legislation.” The proper bibliography citation for this source is: “New York Legislation.” Harper’s Weekly (New York), April, 8, 1865, 9th ed., sec. 432. Accessed September 12, 2016. http://www.sonofthesouth.net/leefoundation/civil-war/1865/April/amnesty.htm. The article clearly focuses on the New York legislation at the time. The author of the article is unclear. There is no given author for any of the article in this particular edition of the newspaper. However, the author’s purpose is clear. The point of this article is to highlight the issues that are concerning…

    • 317 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    The Sarbanes-Oxley Act
    • 1677 Words
    • 7 Pages

    The Sarbanes-Oxley Act

    The Sarbanes-Oxley Act was enacted on July 2012 under the administration of President George W. Bush. The passage of this law was a reaction to a number of major corporate and accounting scandals that included Enron, Tyco International, WorldCom and Adelphia. What the myriads of corporate scandals have in common was skewed and questionable reporting of financial transactions that cost investors billions of dollars. Stock prices of these companies collapsed and questioned the confidence of the independent auditors and the Securities and Exchange Commission (SEC) were questioned. Commonly referred to as Sarbox or SOX, the Act was named after the…

    • 1677 Words
    • 7 Pages
    Powerful 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
  • Satisfactory Essays

    National Defensive Administration Act Pros And Cons
    • 122 Words
    • 1 Page

    National Defensive Administration Act Pros And Cons

    The National Defensive Administration act is on how it protects the citizens, the military and their family from anything happening to them. It allows the people who are expected to be terrorists to be helps until the war in terrorism finishes. Simply, it also allows the government to whisk the citizen away for no reason other than them being suspected of terrorism. For each year congress signs the National Defensive Administration Act, in order to protect our nation and our military personnel. The function of the National Defensive Administration Act is to provide benefits to the military and for the protection of the military family and the citizens of the U.S. It helps the citizens from being unsafe to them being safe.…

    • 122 Words
    • 1 Page
    Satisfactory Essays
    Read More
  • Good Essays

    Pros And Cons Of Bill C-51
    • 1496 Words
    • 6 Pages

    Pros And Cons Of Bill C-51

    At what cost are citizens willing to go in exchange for protection? With the increasing amount of terrorist attacks such as the Orlando Shootings, the Paris Attacks, the Brussels Bombings, etc. occurring around the world with no end in sight, it is not a coincidence that paranoia and fear has risen as well. With more fear in the population, more political pressure is placed on the shoulders of the government, which Canada is no exception to. Due to this, Prime Minister Stephen Harper and the Conservatives has decided to enact Bill C-51, the anti-terror legislation, which essentially allows police, federal institutions and CSIS further powers to gather info and detain “potential terrorists”. This may sound reasonable on the outside, but the…

    • 1496 Words
    • 6 Pages
    Good Essays
    Read More