The Sarbanes Oxley Act ( Sox )

Sarbanes-Oxley was motived by the never-ending waves of corporate financial scandals by Enron, Arthur Andersen, WorldCom, Waste Management, Global Crossing etc. There are 11 sections in the act. There following are the three (3) most important provision in the Sarbanes Oxley Act due to the simple fact that The US Congress were trying to enact a law to combat corporate fraud and misleading of investors:

The Sarbanes-Oxley Act (SOX) of 2002 was implemented to deter fraudulent activities amongst companies by monitoring and auditing financial activities as well as set up internal controls to aid in the safeguard of company funds and investor’s interest. SOX also regulates the non-audit tax services (NATS) that can be performed by an auditing firm. SOX was passed by Congress in 2002 in an attempt to address the unethical behaviors of corporate firms such as Enron, WorldCom, Sunbeam, and others (Raabe, Whittenburg, Sanders, & Sawyers, 2015). Raabe et al. (2015) continues explaining that SOX was created in response to the inadequacies

The Sarbanes-Oxley (SOX) Act was passed by Congress in 2002 to address issues in auditing, corporate governance and capital markets that Congress believed existed. These deficiencies let to several cases of accounting irregularities and securities fraud. According to the Student Guide to the Sarbanes-Oxley Act many changes were made to securities law. A new federal agency was created, the entire accounting industry was restructured, Wall Street practices were reformed, corporate governance procedures were changed and stiffer penalties were given for insider trading and obstruction of justice (Prentice & Bredeson, 2010). Tenet Healthcare Corporation, one of the largest publicly traded healthcare companies in the US at the time, was accused

The Sarbanes - Oxley Act of 2002 is the most important piece of legislation since the 1933 and 34 securities exchange act, affecting everything from corporate governance to the accounting industry and much more. This law was in direct response to the failure of corporate governance at Enron, Tyco, and WorldCom. The Sarbanes - Oxley seeks to bring back the confidence in all publicly held corporations to the shareholders, while placing more responsibility on CEOs and CFOs for the actions of the corporation. "Sarbanes - Oxley is more than just another piece of legislation - it has become synonymous with a new culture of corporate accountability and reform1." The SOX, as it has come to be known, covers a myriad amount of corporate

The Sarbanes-Oxley Act was security law that birthed from corporate and accounting scandals. The act’s name derived from Senator Paul Sarbanes and Congressman Michael G. Oxley. Oxley is a congressman who introduced his Corporate and Auditing Accountability and Responsibility Act to the House of Representatives. Sarbanes was a senator who proposed his Public Company Accounting Reform and Investor Protection Act to the Senate in 2002. After the public kept on demanding for a reform, both of the proposed acts passed and President George W. Bush

Sarbanes-Oxley Act of 2002 is referred to as SOX. SOX’s goal was to primarily fix the

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 (SOX) was passed by Congress in 2002, and is administered by the SEC. The SEC checks for compliance and creates rules and requirements. The Act was created to restore investor confidence in financial statements after major accounting frauds, such as Enron, Tyco, and WorldCom. In addition, SOX aimed to prevent future accounting fraud through improving the accuracy of disclosures and through increasing corporate governance, accountability, and reliability.

The similar circumstance occurred with other companies. As such, the government decided that they must do something about this issue and in 2002 Congress passed the Sarbanes-Oxley Act. Not only this act had an immediate effect on us corporations, but the accounting profession was revolutionized by this new introduction. The act gave more regulatory power to lawyers, analysts, and auditors. WorldCom, who was one of the biggest bankruptcies in history, admitted to overstating profits by billions throughout the years. The

The Sarbanes-Oxley Act was placed into effect July 2002; the act introduced major changes to the regulation of corporate governance and financial practice. The Sarbanes-Oxley Act was named after Senator Paul Sarbanes and Representative Michael Oxley, who were the main architects that set a number of non-negotiable deadlines for compliance. The organization for Economic Cooperation and Development was one of the first non- government organizations to spell out the principles that should govern the corporate and issued the OECD Principles of Corporate Governance. The Sarbanes Oxley Act also known as Public Company Accounting Reform and Information Protection Act and

The Sarbanes-Oxley Act, is an act passed by U.S. Congress on July 30, 2002. The primary reason was to protect investors from the possibility of fraudulent accounting activities by corporations. The act is commonly known as SOX Act. The act is named after its cosponsors, U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. It mandates strict reforms to improve financial disclosures from corporations and prevent accounting fraud. The Sarbanes Oxley Act is arranged into eleven titles. They are Public Company Accounting Oversight Board (PCAOB), Auditor Independence, Corporate Responsibility, Enhanced Financial Disclosures, Analyst Conflicts of Interest, Commission Resources and Authority, White Collar Crime Penalty Enhancement, Corporate Tax Returns, and Corporate Fraud Accountability. These titles provide the description of specific requirements and mandates for the financial reporting. The SOX Act monitors compliance through various sections. However, the most significant sections are 302 (Disclosure controls), 401 (Disclosures in periodic reports), 404 (Assessment of internal control), 802 (Criminal penalties for influencing US Agency investigation/proper administration). As a result of SOX Act, the top management must individually certify the accuracy of financial information. The Act increased the oversight role of board of directors and the independence of the outside

I think that the Sarbanes Oxley Act of 2002 (SOX) has been feasible in managing tricky financial reporting from major corporations. It has a much lower influence on the misappropriation of benefits. No law or Act have the ability to cover all human predisposition to endeavor relationships with good offense. The law made it harder to quote out of context the association's cash related affairs and made the results more extraordinary (Ferrell, Fraedrich, & Ferrell, 2013). SOX have increased auditor’s vigilance and tightened management's responsibility for reporting misappropriating assets (Church & Shefchik, 2012). Here are two reasons I trust SOX was successful. First, this Act was powerful enough to cause chief executives to consider money

The Sarbanes-Oxley Act is considered the most important piece of security legislation since the formation of the Securities and Exchange Commission (SEC) in 1934. It requires the managers and auditors of companies, whose stock is traded on an exchange to document and certify the system of internal controls. The landmark Sarbanes-Oxley Act of 2002 was implemented in response to a series of high-profile financial scandals that happened in the early 2000s at companies such as Enron, WorldCom and Tyco that abused the rule-based accounting practices that resulted in lack of

In the case of Phar-Mor fraud, the company was involved in cover up and some accounts were created to hide the fraudulent activities. Bad inventory counts in the stores were made to help with the cover up and deceit about activities that cost hundreds of millions of dollars. (Williams, S.L., 2011)

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