Summary Of The Sarbanes-Oxley Act Of 2002

This memorandum discusses a brief history of Pat, his wrongdoings and related action, and the response by the related law enforcement agencies.

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.

Numerous scandals broke out in the early 2000s, losing the trust of investors in the public

In the history of the United States, we have experienced numerous financial crisis, where millions have been affected. Some of them include the great depression in 1929, World War II, and recently the financial crisis of 2008. The government has tried to learn from these past events and implement new procedures that would prevent from occurring once again. However, it seems like there is always something new to learn from when these type of events occurs. As such, the government always tries to addressed the issues, but in some instances are praised and in some criticized. Two of the most important legislature that have been passed in order to prevent financial crisis and protect the consumers and the economy of the United States are the

Congress established the Sarbanes-Oxley Act of 2002, which is otherwise called the Public Company Accounting Reform and Investor Protection Act, in the beginning of corporate and accounting scandals that prompted liquidations, serious stock misfortunes, and a loss of trust in stocks (Batten, 2010). The demonstration forces new obligations on corporate administration and criminal authorizes on those supervisors who spurn the law, and it

Sarbanes-Oxley is not intended, or required for nonprofit companies, audit agencies, and nonprofit trustees are expecting them to be as transparent as for-profit companies that are required to comply with the Sarbanes-Oxley Act of 2002.4.McGEEHAN, P. (2003, Jun 17). Most corporate ethics officials are critical of top officers' pay. New York Times, pp. C.8-C.8. Retrieved from http://search.proquest.com/docview/432425436?accountid=32521Patrick McGeehan examines corporate ethics versus the paychecks that senior executives receive. He discuses how even “executives involved in serious violations of their companies' codes of ethics and compliance are paid severance” (McGeehan, 2003) He explains the effect that actions like this have on the rest of

Section 302. Corporate Responsibility for Financial Reports. “The essence of Section 302 of the Sarbanes-Oxley Act states that the CEO and CFO are directly responsible

On July 30, 2002, the Sarbanes – Oxley Act was developed to help protect the public from fraud within corporation. However, it was created because positive solutions were needed after the issues from fraudulent accounting practice. For example the Enron, Tyco, and WorldCom scandals and the questions concerning governance in American Corporations that occurred in

The 2002 Sarbanes-Oxley Act was implemented for the main purpose of protecting investors through enhancing and promoting a real sense of transparency, precision and accountability when it comes to the governance of corporate entities and this was to ensure that the divulgences employed by the corporates are in pursuant to the ordinances of the sureties of the investors and the act also had other functions as well. In brief, the Act was enactment in 2002 was mainly that it helps in restoration of public confidence and integrity to the financial markets as events witnessed by corporates going under with examples like Tyco, Enron, Adelphia and Worldcom (Orin, 2008). It became very crucial for corporates to engage in effective corporate

Sarbanes-Oxley Act was passed in 2002 by former president George Bush. Essentially to combat the Enron crisis. The Sox Act basically has regulatory control and creates an enviroment that is looking out for the public. Ideally this regulatory environment protects the public from fraud within corporations. Understanding, that while having this regulatory control at times the Sox requirements need to be tweaked or amended. Not only now but in the future as well. The main aspects of the Sox act are essentially looking out for our welfare as a consumer. Our government has the obligation to regulate

The Sarbanes-Oxley (SOX) Act of 2002 was legislated by Congress to restore reliability of financial statements with the objectives to raise standards of corporate accountability, to not only improve detection, but to also prevent fraud and abuse (Terando & Kurtenbach, 2009). Additionally, SOX was the response to general failure of business ethics such as the propagation of abusive tax shelters and greater aggressive tax avoidance strategies (Raabe, Whittenburg, Sanders, & Sawyers, 2015).

This chart from the site “Chaos of Business” shows the large decline of the Enron stock when it was being investigated by the Securities and Exchange Commission. People who had shares of the stock had lost almost all of their money they invested into the company. This chart shows that the share price dropped from $84 per share to $0.01 per share in about ten months. It seems like not a big deal, but in reality people usually buy hundreds of shares in a company, so that loss of $84 can calculate to about $25,200 if a person has 300 shares lost. This chart shows how quickly the money was lost and how badly it affected the people who owned shares of Enron.

Bullseye, a publicly traded company and general merchandise retailer based out of Minneapolis, MN, is one of our firms most prestigious clients. I, Jennifer Gore, have just been informed that I will be leading a team of four other accountants to perform the 2016 integrated audit. One of whom is an IT expert and will bring valuable insight into the technology side of the audit. This audit is a continuation from previous years’ audits and anticipate that things will run smoothly barring any new revelations that we find within the audit itself. Per the Sarbanes-Oxley Act of 2002 (SOX), all publicly traded companies need to have an integrated audit that consists of the Financial Statement audit as well as the Internal Control of Financial Reporting (ICFR) audit (Hooks, 2011, pg. 36). There are several sections to the plan of this integrated audit and they include:

Internal Controls are the policies and procedures used to safeguard assets, ensure accurate business information, and ensure compliance with laws and regulations. In the 2000’s, there were many businesses, stockholders, creditors and investors affected by scandals and fraud. The Sarbanes-Oxley Act of 2002 is extremely important to the laws affecting U.S businesses today; this is why there is such an emphasis on the importance of effective internal controls. The three internal control objectives can be achieved by applying the five elements of internal controls. The five elements are control environment, risk assessment, control procedures, monitoring and information communication. Each of the five elements performs a separate duty towards a business in order to ensure that the business is being protected. I’ve been employed at Target for nearly 2 years now and I witness and work with the internal controls of the business. Target is the second largest discount retailer in the United States and because of this they take internal controls very seriously. When any person comes in for an interview, your interviewer introduces you to them right away as a way to introduce you to the company.

The Sarbanes-Oxley Act (SOX) was enacted in July 30, 2002, by Congress to protect shareholders and the general public from fraudulent corporate practices and accounting errors and to maintain auditor independence.   In protecting the shareholders and the general public the SOX Act is intended to improve the transparency of the financial reporting.   Financial reports are to be certified by the Chief Executive Officer (CEO) and Chief Financial Officer (CFO) creating increased responsibility and independence with auditing by independent audit firms. In discussing the SOX Act, we will focus on how this act affects the CEOs; CFOs; outside independent audit firms; the advantages and a