Sarbanes Oxley Act # 11 Titles

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Sarbanes-Oxley Act contains 11 titles, they provide specific guidelines and regulations for financial reporting. The titles are: Public Company Accounting Oversight Board (PCAOB), Auditor Independence, Corporate Responsibility, Enhanced Financial Disclosures, Analyst Conflict of Interest, Commission Resources and Authority, Studies and Reports, Corporate and Criminal Fraud Accountability, White Collar Crime Penalty Enhancement, Corporate Tax Returns and Corporate Fraud Accountability. In the introduction of the act, it states that it is an act “to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes”. (Sarbanes-Oxley Act, 2002) Title I of the SOX…show more content…
If inadequacies are discovered, a written report of the findings must be provided to the SEC and it is made available to the public. Section 105 gives PCAOB authority to conduct investigations and obtain all relevant information and it has power to suspend auditors, revoke the registration of the accounting firm, impose penalties for violations or unwilling to corporate with an investigation. Section 106 regulates foreign public accounting firms equipping an audit report to an issuer and requires them to comply with board requests. Section 107 gives SEC oversight and enforcement authority over the PCAOB and its decisions. Section 108 amends the securities Act of 1933 to allow the SEC, which has the authority to establish accounting standards, to adopt accounting standards established by a standard setting body that meets certain qualifications, such as the FASB. Section 109 calls for funding of the PCAOB and the designated accounting standard-setting body (FASB) to be funded from fees imposed upon public companies. Title I increases the oversight and authority over public accounting firms which was lacking in adequacy before SOX was enacted. The public accounting firms were able to on focus in their own interest rather than public interest since there was no law enforcing them. The firms are to act at their best behavior as the routine inspection for public accounting firms and the threat of any
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