2002

Introduction The Sarbanes-Oxley Act of 2002 (SOX) was enacted on July 30, 2002 as a result of a series of corporate fraud scandals that shook the world and devastated investor confidence. Expand History of the Act The Sarbanes-Oxley Act was enacted primarily to address a multitude of corporate scandals. The largest and most infamous scandal was from an energy company named Enron. Enron was the 7th largest company in 2001 and by the end of 2002 it was bankrupt. The company was found to be falsifying

This chart from the site “Chaos of Business” shows the large decline of the Enron stock when it was being investigated by the Securities and Exchange Commission. People who had shares of the stock had lost almost all of their money they invested into the company. This chart shows that the share price dropped from $84 per share to $0.01 per share in about ten months. It seems like not a big deal, but in reality people usually buy hundreds of shares in a company, so that loss of $84 can calculate to

The Sarbanes Oxley Act of 2002 marked a significant change in the world of business with relation to auditors and public companies. In this paper, I will discuss the causes that led to the creation of the Sarbanes Oxley Act as well as key sections of the act that impact auditors and their effect on public companies and investors. I will also address the impact of the auditing standard no. 5 and how it pertain to auditors and public accounting firms. Causes of the Sarbanes Oxley Act In 2000 the panel

The Sarbanes-Oxley Act of 2002 Sophie Cook Houston Baptist University   The Sarbanes-Oxley Act 2002 Introduction In the early 2000s, corporate financial statement fraud was rampant, as companies such as Enron and WorldCom used shady accounting practices to inflate their revenues and hide losses. This led to the introduction of the Sarbanes-Oxley Act of 2002, the most extensive form of accounting reform legislation ever passed. It had many consequences for publicly traded companies and public accounting

Introduction Since the creation of the Homeland Security Act in 2002 after the 9/11, attack the department has come across challenges and criticism from the government and private sectors alone. Since the Homeland Security Act of 2002 it has been amended in carrying out the effects of the 9/11 Commission Act of 2007. The activity report has shown it provides a strong well-rounded and strategic foundation of the highest priorities in which it ensures the department will invest and operate in a producing

The movie Antwone Fisher (2002) illustrates the main character as a 24-year-old African American male from Cleveland, Ohio. Mr. Fisher is physically in good condition yet he seems mentally and emotionally troubled. He is often distant amongst his peers, quick-tempered, violent and defensive. He is a six-year Navy officer who has been involved in several fights with his shipmates. Due to frequent violent conflicts, Antwone was demoted to seaman and required to attend three counseling sessions with

The Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, the market becomes fair for investors to have confidence in the integrity of the disclosures and financial reports given to them. The code of ethics includes the promotion of honest and ethical conduct

valuable insight into the technology side of the audit. This audit is a continuation from previous years’ audits and anticipate that things will run smoothly barring any new revelations that we find within the audit itself. Per the Sarbanes-Oxley Act of 2002 (SOX), all publicly traded companies need to have an integrated audit that consists of the Financial Statement audit as well as the Internal Control of Financial Reporting (ICFR) audit (Hooks, 2011, pg. 36). There are several sections to the plan of

The audit world was transformed more than ten years ago due to a series of accounting scandals. This change took place when The Sarbanes–Oxley Act of 2002, otherwise known as SOX, was passed affecting not only business entities but also the firms that audit those companies (Thomas). One of the companies whose fraud was unmasked by the passage of SOX was HealthSouth Corporation. A company in the healthcare industry who had overstated about $2.7 billion dollars in earnings since 1996. The company’s

“cook the books” by management. This could very well happen if the company needs to improve their company’s earnings. Friendship combined with lofty pay could easily persuade the auditor into disregarding the GAAP as well as the Sarbanes-Oxley Act of 2002. Furthermore, the nature of the job is highly unethical. As it violates several provisions of the aforementioned Sarbanes-Oxley Act. The auditor, management, and the top executives of the company will all be affected by this ethical dilemma. By taking