The Implications of the Sarbanes Oxley Act on the Accounting Profession

costs of compliance with the Sarbanes Oxley Act of 2002 are difficult enough to quantify. However, there are other qualitative costs that are even more difficult to measure. Such as, the compliance costs the public accounting firms by increasing auditor workloads (Jahmani, Yousef; Dowling, William A., 2008). The government bureaucracy increases tax payer burdens due to increases in government regulating agencies. VII. The general public’s consensus on the Sarbanes Oxley Act of 2002 Overall, the general

The Significance of the Sarbanes-Oxley Act of 2002 I. The audit profession before 2002 The audit profession is a relative new comer to the accounting world. The Industrial Revolution, with the growing business sector, was the spark that resulted in auditing techniques being sought out and utilized. Initially, audit techniques and methods were adopted by companies to control costs and detect fraud, which is more closely aligned with internal auditing. However, the need for mandatory oversight of

History of Sarbanes Oxley and the Reasons for Enactment Virginia Knight Student ID: 6892460166 Accounting Capstone Senior Seminar in Accounting ACC 499 006016 Spring 2009 Submitted to: Professor Tee Thein June 19, 2009 Abstract: In 2002 the Sarbanes-Oxley Act was passed. This is a mandatory act that all organizations, large and small, must comply with. This legislation introduced major changes to the regulation of financial practice and corporate governance. There are eleven titles

August 22, 2005 SUBJECT: Sarbanes-Oxley recommendations As consultants for Ancher Public Trading (APT), Learning Team A would like to discuss the implications of the Sarbanes-Oxley (SOX) legislation. This memorandum provides a brief history of SOX¡¦s creation, explains the relationship amongst the FASB, SEC and PCAOB, describes the pros and cons of SOX, assesses the impacts of SOX, and lists ethical considerations of SOX. History of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response

THE COLLAPSE OF ENRON & THE INTRODUCTION OF THE SARBANES OXLEY ACT BY TREVOR GARRETT 02/25/2011 Abstract Enron Corporation was one of the largest energy trading, natural gas and Utilities Company in the world that was based in Huston, Texas. The downfall of Enron is one of the most infamous and shocking events in the financial world, and its reverberations were felt around the globe. Prior to its collapse in 2001, Enron was one of the leading companies in the U.S and considered among

Accounting Fraud, the Investor and the Sarbanes Oxley Act Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of assets or underreporting of liabilities, sometimes

Corporate Governance – The Role of the Audit Committee Deborah L. Lindberg, D.B.A. Associate Professor Department of Accounting Illinois State University April 2004 Direct all correspondence to: Deborah L. Lindberg, Illinois State University, College of Business, Department of Accounting, Campus Box 5520, Normal, IL, USA 61790-5520; Telephone: (309) 438-7166; Fax: (309) 438-8431; E-mail: lindberg@ilstu.edu. The Katie School of Insurance & Financial Services at Illinois State University,

responsibility of company’s financial reports and disclosure which is connected with the section 302. The act requires the manager to certify the accuracy of the financial statement personally. If the chief executive CEO, chief financial officer CFO or other top manager knowing or willfully makes a false certification, he would be face 10 or 20 years in the prison. Also, if the company had the accounting restatement due to the manager’s misconduct, he still has to give up the bonuses or profits made from

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

financial results of operations. The auditor was trusted to present the facts as he saw it, regardless of the implications. When events such as the academy awards used the services of a CPA, it was done not because the counting of ballots was a technically difficult task, but because people believed CPA's could be trusted. The recent problems encountered by many of the nations top accounting firms "has taken something important from all accountants: the assurance that