The Sarbanes-Oxley Act of 2002

3255 Words Apr 1st, 2012 14 Pages
The Sarbanes-Oxley Act of 2002

Presented by:
Ibrahim M. Conteh; Ruby Proctor Garcia; Kathleen M. Parry;
Joseph M. Schmerling; Jaime Ulloa

Auditing Theory and Practice
0902 ACCT422 4021
Due: April 29, 2009

Table of Contents

Page Number

What is the Sarbanes-Oxley Act of 2002? 3
Why was SOX established? 4

When did SOX take effect? 5

What companies were affected and how? 6

What does SOX compliance require? 9

Conclusion 11

References 13

What is the Sarbanes-Oxley Act of 2002? The Sarbanes-Oxley Act of 2002 – its official name being “Public Company Accounting Reform and Investor Protection Act of 2002” – is
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The SEC appoints the members of the PCAOB and has oversight and enforcement authority over it. The PCAOB is charged with establishing and enforcing auditing, quality control, ethics and independence standards and rules for public company accountants. The SEC will not accept an audit report from an accounting firm that is not registered with the PCAOB. Thus, SEC reporting companies must engage the services of a registered public accounting firm. The PCAOB is funded by new fees imposed on publicly-traded companies based on their market capitalization – the fees range from as little as $100 for the very smallest companies to more than $1 million for a handful of the largest companies.[4]
When did SOX take effect? Elements of the Act were phased in over time. Those companies with a market capitalization between $75 million and $700 million whose fiscal years closed between November 15, 2004 and February 28, 2005 were granted an extension of 45 days on the internal controls portion of SOX financial reporting frameworks which were to be in place and operational for their first fiscal year-end reports after November 15, 2004, then all quarterly reports thereafter. Smaller companies had until their first fiscal year ending on or after July 15, 2005, to comply, and it will be for the first fiscal

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