Essay about Details of the Sarbanes Oxley Act 2002

The Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, the market becomes fair for investors to have confidence in the integrity of the disclosures and financial reports given to them. The code of ethics includes the promotion of honest and ethical conduct. This code requires disclosure on the codes that apply to senior financial officers and including provisions to encourage whistle blowing, a Business Ethics Perspective on Sarbanes-Oxley and the Organizational Sentencing Guidelines. The Congress signed the Sarbanes-Oxley Act into law in response to the public demand for reform. Even though there is some criticism of it, the act still stands to prevent and punish corporate fraud and malpractice.

The Sarbanes-Oxley Act of 2002 – its official name being “Public Company Accounting Reform and Investor Protection Act of 2002” – is

The Sarbanes-Oxley Act was enacted in response to a series of high-profile financial scandals that occurred in the early 2000s at companies including Enron, WorldCom and Tyco that rattled investor confidence. The act, drafted by U.S. Congressmen Paul Sarbanes and Michael Oxley, was aimed at improving corporate governance and accountability.

The Sarbanes-Oxley Act, or SOX Act, was enacted on July 30, 2002. Since it was enacted that summer it has changed how the public business handle their accounting and auditing. The federal law was made coming off of a number of large corporations involved in scandals. For example a company like Enron was caught in accounting fraud in late 2001 when the company was using false financial statements. Once Enron was caught that had many lawsuits filed against them and had to file for bankruptcy. It was this scandal that played a big part in producing the Sarbanes-Oxley act in 2002.

The legislation acquires its name from the authors who is Senator Paul Sarbanes along with the Representative Michael Oxley

With regards to internal control and evaluation, the “Sarbanes-Oxley Act of 2002” is the manuscript to address fraud and risking the trustworthiness of the corporation.

Over the past decade the world has been taken by surprise by the numerous accounting scandals that have occurred, for example, Enron, WorldCom, Tyco, Xerox, and Global Crossing (Suyanto, 2009, p. 118). Since those accounting scandals occurred the United States Congress passed the Sarbanes-Oxley Act of 2002 (SOX) to help improve a company’s corporate governance and help deter fraud (Chinniah, 2015, p.2). In addition to SOX, the Accounting Institute of Certified Public Accountants (AICPA) passed the Statement on Auditing Standards (SAS) No. 99 (p. 118). Both of these new accounting laws help to deter financial statement fraud from occurring.

The Sarbanes Oxley Act of 2002 marked a significant change in the world of business with relation to auditors and public companies. In this paper, I will discuss the causes that led to the creation of the Sarbanes Oxley Act as well as key sections of the act that impact auditors and their effect on public companies and investors. I will also address the impact of the auditing standard no. 5 and how it pertain to auditors and public accounting firms.

With this research I learned many interesting things about the Sarbanes-Oxley Act of 2002. I know how effective methods and keeping in mind the end goal to be effective in business, an organization must have the capacity to track their advantages. This following framework is normally done by an accountant and must be solid with a specific end goal to be successful. The way and organization guarantees their monetary records are solid is by setting up an arrangement of inward controls. Inside controls permit an organization to shield its advantages from extortion and burglary and additionally guaranteeing records are kept precisely by diminishing mistakes and abnormalities. Interior controls work by doling out obligation, isolating obligations

      The Sarbanes-Oxley Act (SOX) was enacted in July 30, 2002, by Congress to protect shareholders and the general

This paper provides an in-depth evaluation of Sarbanes-Oxley Act, which is said to be promoted to produce change in the corporate environment, in general, by stressing issues of public accountability and disclosure in the financial operations of business. It explains how this is an Act that represents the government's and the Security and Exchange Commission's concern in promoting ethical standards in terms of financial disclosure in the corporate environment.

The Securities and Exchange Commission’s mission is to “protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.” The purpose of this paper is to examine three recent federal security laws to see if they uphold all parts of the SEC’s mission. The three laws to examine are Sarbanes Oxley Act (2002); Emergency Economic Recovery Stabilization Act (2008); and Dodd Frank Wall Street Reform and Consumer Protection Act (2010).

Over the years, regulators and practitioners raise concerns on auditor independence. The Sarbanes-Oxley Act of 2002 includes rules on auditor responsibility and independence. The PCAOB designed policies on auditors’ ethical behavior and independence. The AICPA Code of Professional Conduct contains Section 101 – Independence that describes requirements for the auditor during engagements. The regulators establish principles and standards of the accounting profession, but the number of financial scandals continue increases due to the audit failure.

The Sarbanes-Oxley Act is meant to bring accuracy and reliability of corporate disclosures by requiring certifications done to the quarterly and annual reports by the chief executive and financial officers.[3] The Sarbanes-Oxley Act was enforced in July 2002 following a series of high profile accounting scandals. For all financial statements that were to be filed deadlines were provided to comply with the provisions

Oftentimes, firms fail to put into place efficient internal controls that may unfortunately lead to corporate loss and even corporate failure. Under the authority of the Sarbanes-Oxley Act of 2002 (SOX), congress mandated that all public companies must establish and enforce a system of internal controls over its financial reporting. The role of an auditor is to evaluate these controls and issue an opinion with the goal of assuring that management