The Sarbanes-Oxley Act of 2002 was a necessary response to the corporate accounting scandals of the early 2000s. It brought much-needed reform to the regulatory framework for corporate accounting and reporting and increased the accountability of public companies
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The Sarbanes-Oxley Act of 2002 was a necessary response to the corporate accounting scandals of the early 2000s. It brought much-needed reform to the regulatory framework for corporate accounting and reporting and increased the accountability of public companies and their auditors. While there are concerns about the costs of compliance and the impact on competitiveness, there is evidence to suggest that SOX has helped prevent fraudulent reporting and improve the quality of financial reporting. Nonetheless, there may be room for further improvement in the act's implementation to address any remaining issues and to ensure continued investor confidence in the US financial markets.
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- Sarbanes Oxley Act of 2002. include the achievements, failure, and challenges of SOX2002. A brief note to describe SOX and why it is enacted. Discuss the corporate scandals that occurred before the enactment of SOX Act and how those scandals could have been avoided if SOX was in place. The second phase of your analysis should discuss the corporate scandals occurred after the enactment of SOX Act clearly highlighting why Sox could not act as a deterrent to the scandals. Do you think there are any gaps in the act or the factors that led to the scandal are just beyond the purview of the SOX Act. Challenges before the SOX act as we move forward.1.Assume that Management had determined that its organization’s audit committee is not effective. How do the weakness in audit committee affect management’s evaluation of internal control over financial reporting? Would an ineffective audit committee constitute a material weakness in internal control over financial reporting? State the rationale for your response. 2.Why is there a need for a corporation to maintain a comprehensive and cost-efficient communication channels to shareholders and other investors? https://t.co/T2YunPMci6 may participation of employee in corporate governance be encouraged?https://t.co/R4EZqrqGgG whom is the board of directors accountable? 5.Does good governance require absolute rules that must be adopted by all organizations? Explain.Link: https://t.co/iuDNqprARZ Subject: management, accountingBelow are several statements about the Sarbanes-Oxley Act (SOX).1. SOX represents legislation passed in response to several accounting scandals in the early 2000s.2. The requirements outlined in SOX apply only to those companies expected to have weak internal controls or to have manipulated financial statements in the past.3. Section 404 of SOX requires both company management and auditors to document and assess the effectiveness of a company’s internal control processes that could affect financial reporting.4. Severe financial penalties and the possibility of imprisonment are consequences of fraudulent misstatement.5. With the establishment of SOX, management now has primary responsibility for hiring an external audit firm.6. The lead auditor in charge of auditing a particular company must rotate off that company only when occupational fraud is suspected.Required:State whether the answer to each of the statements is true or false.
- In 2001 and 2002 there were several high-profile US corporate collapses associated with misleading financial statements and accounting practices. Following these collapses, new laws were introduced to improve the quality of financial reporting. a) In your opinion, will further regulation prevent deliberately misleading reporting? Explain. b) Are additional laws likely to prevent corporate collapses? Why or why not? c) How important is the enforcement of financial reporting requirements in promoting high quality reporting?Regarding Enron, this was a company that resulted in the creation of the Sarbanes-Oxley Act and many reforms to the accounting profession. Research the company and answer the following questions. Question 1: How did the members of the accounting firms violate the standards of integrity and credibility? Question 2: Do you believe the new standards that resulted from the Enron scandal to be adequate? Question 3: Name and explain two aspects of the Sarbanes - Oxley Act of 2002.Impact of Sarbanes–Oxley Act. Your long-time client, Central Office Supply, has beenrapidly expanding, and the board of directors is considering taking the company public.CEO Terry Puckett has heard that costs of operating a public company have increased significantly as a result of the Sarbanes–Oxley Act. Puckett is particularly concerned withreports that audit fees have doubled because of internal control provisions of the act andPCAOB Auditing Standard No. 2201. Puckett has asked you to explain the possible effectson the audit of complying with the requirements of Sarbanes–Oxley.Required:Draft a letter to Puckett outlining the changes in the company’s responsibilities for internal control and changes in the audit due to Sarbanes–Oxley and PCAOB Auditing Standard No. 2201
- Ma4. What do you think are the top cyber threats targeting accounting firms? List two ways in which a company can protect its data What is the biggest challenges facing the accounting profession? What barriers might prevent you from conducting a good audit? Why is the leader important in accounting? How does new technology affect the accounting profession> What are the new technology being used in the accounting system?Ma4. Jill Solomon, in her book Corporate Governance and Accountability (2010) poses the question “How does financial accounting information help shareholders to monitor and control company management in an agency theory framework?”(Page 154). Attempt to provide a cogent answer to this question.1. Would an auditing-standard convergence prevent fraud at the top-executive level? If No, how to deter top executives from engaging in illegal conduct? 2. As an accounting professional, what can you do better than a machine or artificial intelligence? If accounting and auditing standards are 100% rules-based without any judgment, would there be more or less accounting jobs for us?
- Select the INCORRECT statement: The aim of ensuring good corporate governance is... Select one: 1.Better understand and isolate the causes of market crashes 2.To ensure investor protection 3.To maximise corporate transparency Prevent market disruptions resulting from corporate collapse 4.Prosecute shareholders for allowing high risk business decisions that resulted in corporate collapseAnswer on these three senarios: Senario 1: Evaluate the essential trade-off faced by government in designing regulation of public firms? Senario 2: Discuss the essential trade-off faced by government in designing regulation of public firms? Senario 3: Many of the provisions of the Sarbanes-Oxley Act of 2002 were aimed at auditors.How does this affect corporate governance? Critically analysis.Y2 Please help with Development of an Anti-Fraud Program The potential for fraud occurs in all organizations, regardless of the industry in which it operates, financial structure, or size. Every organization is vulnerable to fraud. The risk of fraud should be reduced as much as possible to improve the longevity of the organization. Hence, preventing, deterring, and detecting fraud are crucial to the success of organizations. Deterring and preventing fraud can be more economical than detecting, investigating, and recovering from fraud after the fact. These anti-fraud measures must start at the top and must be communicated throughout the organization. They must go beyond internal controls yet consider the cost-benefit. Please explain ho to develop an anti-fraud program, or model, that can be implemented in any organization. In other words, don't apply the model to a specific organization. The model, if applied correctly, must be efficient in preventing, detecting and deterring fraud.…