Preview

Why Did The Sarbanes-Oxley Act: Difference

Satisfactory Essays
Open Document
Open Document
401 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Why Did The Sarbanes-Oxley Act: Difference
Ethical Behavior
Hilda Hoyt
XACC/291
April 23, 2015
Dr. Johnny Hamblin
Ethical Behavior
The question asked, did the Sarbanes-Oxley Act make any difference and why or why not do I think this way.
This Act made a big difference in the ethical behavior of companies. In the past some companies felt that they could take any liberty and show it in any way they wanted on their financial statements. For example, they need another tax break, so they would get an upper management a new car, when they had just purchased one the previous year. This one had not depreciated that much, but a tax write off was needed. This can be viewed as ethical wrong. Why not look at other ways to put you into another tax bracket, such as improve your employee

You May Also Find These Documents Helpful

  • Good Essays

    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
  • Good Essays

    Acc291Individual Paper

    • 649 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 (SOX) was created in response to the series of misleading and fraudulent activities of publicly traded big business’s in the 1990s. During this time, multiple large publicly-traded businesses increased their stock prices by “publishing false or deceptive financial statements” (Lasher, 2008, p. 187). The most publicly charged company was Enron, which was then followed by Xerox, WorldCom and Global Crossing. This resulted in millions of dollars of stock market value disappearing in what seemed to be overnight. It is in response to these events that Congress drafted and passed the Sarbanes-Oxley Act of 2002.…

    • 649 Words
    • 3 Pages
    Good Essays
  • 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
  • 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
  • Satisfactory Essays

    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…

    • 382 Words
    • 2 Pages
    Satisfactory 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
  • 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
  • Powerful Essays

    Sarbanes-Oxley Act of 2002

    • 1496 Words
    • 6 Pages

    I have written this report in order to fulfill my graduation requirements at Southwestern College. Also to become more knowledgeable on the Sarbanes-Oxley Act of 2002 (SOX) and the impact it has had on the business world.…

    • 1496 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    ACC 230 Entire Course

    • 1473 Words
    • 6 Pages

    Do you think this law will make financial statements more reliable? Also, discuss how SarbanesOxley establishes…

    • 1473 Words
    • 6 Pages
    Satisfactory 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
  • Good Essays

    This Act is basically an effort since it was signed to help the economy, save and create millions of jobs, and look into the economic future of our country. It does this by allowing for education benefits, increasing earned income tax credit, allowing more families to qualify for additional child tax credit, and much more. I found this one much harder to compare to the Second Industrial Revolution, Roaring Twenties, and Great Depression because it is still a work in progress and hasn’t seem a great amount of success like the Second Industrial Revolution or the Roaring Twenties. But it also isn't as severe as the Great Depression…

    • 605 Words
    • 3 Pages
    Good 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
  • Satisfactory Essays

    In any society there will be people that will do anything to succeed in life which includes breaking the law or even finding loop holes within laws. Now the Sarbanes-Oxley Act is a federal law to try and protect shareholders and the general public from fraudulent practices but in the end it is just a law and all laws can be broken. Some critics have pointed out the “Madoff scandal as a prime example of how the Sarbanes-Oxley Act has failed” (Fuller, 2009). But just because a system fails doesn 't mean you give up or stop it means that you need to perfect the system. So where does the government go from here? Do they make more laws or add more…

    • 373 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    LAW 421 Week 3

    • 311 Words
    • 2 Pages

    This article is about Congress a suggested revoke of the Sarbanes-Oxley Act (SOA) of 2002. According to this article, the proposal came across as an excuse for some government officials to avoid topics that were is demand of resolution by the public. According to this article, “the SOA of 2002 is unnecessary, harmful, and inadequate” (Niskanen, 2005). Penalties under SOA involved jail time and loss of personal property (Niskanen, 2005).…

    • 311 Words
    • 2 Pages
    Satisfactory 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