The Implications of the Sarbanes Oxley Act on the Accounting Profession

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The Implications of the Sarbanes Oxley Act on the Accounting Profession

Abstract

On July 30, 2002, the Sarbanes Oxley Act (also known as SOX) was signed into law by President George W. Bush. The Sarbanes Oxley Act of 2002 is a federal law that set new or improved standards for all U.S. public company boards, management and public accounting firms. Covered in the eleven titles are additional corporate board responsibilities, auditing requirements and criminal penalties. This essay reviews the implications of the Sarbanes Oxley Act on the accounting profession.

The Implications of the Sarbanes Oxley Act on the Accounting Profession

President George W. Bush signed the Sarbanes Oxley Act into law on July 30, 2002.
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Section 802 specified fines up to as much as five million dollars and up to twenty years imprisonment, or both. Section 1107 mentions fines and up to ten years imprisonment for any harmful actions retaliated toward whistleblowers (FindLaw, 2002). External auditors (only those registered with the Public Company Accounting Oversight Board) were required to review these financial statements and issue opinions on the accuracy of the financial reports and whether effective internal
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