5/17/13 Sarbanes-Oxley Act (SOX) SearchCIO.com Sarbanes-Oxley Act (SOX) 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
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Sarbanes-Oxley Act Article Analysis This article discussed the reasons why the Sarbanes-Oxley Act was enacted. The corporate fraud and dishonesty the was present in companies such as Enron Corp‚ WorldCom‚ and Adelphia Communications‚ Inc. required the Federal government to enact legislation that would protect the free enterprise system within the United States. The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB) that is responsible for regulating accounting
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the Sarbanes-Oxley Act affected internal controls? The Sarbanes-Oxley Act was created because of the losses that stockholders experienced due to financial fraud. Because of SOX‚ internal control of public companies’ management increased. It established provisions that companies should fulfill pertaining to their management and recording of transactions. More thorough and stricter guidelines were created to help companies go about with their activities related to internal controls. This Act increased
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Sarbanes-Oxley Act (Sox) 2002: CEOs & CFOs The Sox Act in 2002 enhanced the responsibilities of the CEOs and CFOs by requiring them to certify the accuracy of the financial statements and making sure that there is no intention of fraudulence. Furthermore‚ they could significant penalties such as that they could face up to 10 years for “knowing” violations and up to 20 years if “willing” as well as criminal charges for certifying false information. In addition‚ they will be prohibited from holding
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01. [pic]Sarbanes–Oxley Act Sen. Paul Sarbanes (D–MD) and Rep. Michael G. Oxley (R–OH-4)‚ the co-sponsors of the Sarbanes–Oxley Act. The Sarbanes–Oxley Act of 2002 (Pub.L. 107-204‚ 116 Stat. 745‚ enacted July 30‚ 2002)‚ also known as the ’Public Company Accounting Reform and Investor Protection Act’ (in the Senate) and ’Corporate and Auditing Accountability and Responsibility Act’ (in the House) and commonly called Sarbanes–Oxley‚ Sarbox or SOX‚ is a United States federal law enacted on July 30
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of Enron occurred in 2001 has made the U.S. and global focus on internal control. So the internal control evolving from a spontaneous governance mechanism to a system construction is a regulatory power driven by government. As important measures of the government regulation‚ mandatory disclosure of internal control information is to be legalized‚ has become an important part of the construction of corporate transparency. The typical example is the Sarbanes-Oxley Act of 2002‚ as well as Section 302
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[Type the company name] | Why the Sarbanes-Oxley Act should not be repealed. | [Type the document subtitle] | | Introduction of Sarbanes Oxley On March 5th‚ 2001‚ Fortune magazine released an article by Bethany McLean. The theme of this article was that Enron’s stocks were overpriced. She stated that Enron’s stocks were really popular and that its numbers were really impressive. Its revenues had doubled to over $100 billion‚ earnings were increasing by 25% and stocks were returning
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The Sarbanes –Oxley Act of 2002 has increased integrity of business dealings and financial reporting. Over the past decade‚ there were a huge number of corporate fraud cases. Companies were creating fraudulent accounting statements. In order to accomplish massive fraud‚ fictitious sales‚ inflated inventories‚ and phony profits were invented by corporate schemers. Companies such as Sunbeam‚ Waste Management‚ Rite-Aid and some others were some of the earlier cases before getting to the larger scandals
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SARBANES-OXLEY ACT ACCOUNTING FOR NON-ACCOUNTING MAJORS 04/22/2013 Sarbanes-Oxley Act a.k.a. “SOX” The Sarbanes-Oxley Act was enacted to establish new or enhanced standards for U.S. public company boards‚ management‚ and public accounting firms. It is also known as the “Public Company Accounting Reform and the Investor Protection Act of 2002. It was created by Senator Paul Sarbanes (D-Maryland) and US Congressman Michael Oxley (R-Ohio) and was signed into law on July 30th 2002. This
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The Sarbanes-Oxley Act is organized into eleven titles and protects from errors in accounting to fraudulent practices. IT and financial departments are affected due IT departments the daunting task of having to produce and preserve a archive of corporate files in a way that is lucrative and that complies with the requirements set forth by the legislation. The Sarbanes-Oxley Act states that all records can only be saved for five years. SOX allow enough information about
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