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Analysis of Two Themes: The Sarbanes Oxley Act and Telework

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1) Sarbanes-Oxley
The Sarbanes-Oxley act was enacted in 2002 as a United States federal law that changed the regulations and procedures of management and public accounting firms, and all U.S. public company boards. The act was created in response to the major scandals in corporate and accounting corporations. Sarbanes-Oxley over the years has implemented new sections and regulations. The act specifically requires that the management of public companies assess the effectiveness of the internal controls to ensure that it will not affect financial reporting (Kravitz, 2012). Section 404 of the Sarbanes-Oxley Act specifically requires “a publicly-held company’s auditor to attest to, and report on, management’s assessment of its internal controls”. (Kravitz, 2012) This has helped many publicly companies (especially small ones) to improve their financial reporting and transparency.
The Section 404 of the Sarbanes-Oxley Act brought about improvement and protection in companies at high cost; impacting mainly the smaller companies. Due to this, the Dodd Frank Act of 2010 granted some companies an exemption from Section 404 if they had less than $75 million in market capitalization (Amato, 2012 p.1-2). Dodd-Frank required the SEC to reevaluate the terms of Section 404 in two ways such as: Requiring the SEC to conduct a study on the burden caused by Section 404 compliance for companies with a market capitalization between $75 million and $250 million. And also required the SEC to
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