Sarbanes

Introduction The 2002 Sarbanes-Oxley Act was implemented for the main purpose of protecting investors through enhancing and promoting a real sense of transparency, precision and accountability when it comes to the governance of corporate entities and this was to ensure that the divulgences employed by the corporates are in pursuant to the ordinances of the sureties of the investors and the act also had other functions as well. In brief, the Act was enactment in 2002 was mainly that it helps in restoration

The Sarbanes-Oxley Act was conceived by Senator Paul Sarbanes and Congressman Michael Oxley and signed into legislation by George W. Bush in 2002. The 11 titled Act became necessary when investors lost their confidence in days following the Enron, Arthur Anderson, and WorldCom fiascos. The purpose of the law is to provide board members, executives, auditors, attorneys, and directors with specific written duties and penalties for noncompliance and “to protect investors by improving the accuracy and

standards for responsible behavior — society’s codification of what is right and wrong” and to satisfy stakeholder’s concerns regarding companies’ abilities to act in an ethical fashion at all times (Ferrell, Fraedrich, & Ferrell, 2013, p. 95). The Sarbanes-Oxley Act (SOX) was created following accounting fraud scandals of several companies, including the Enron Corporation and Worldcom (Ferrell et al, 2015). The Act was established to protect stakeholders and the public from accounting fraud. It has

many organizations today that are using the Sarbanes-Oxley (SOX) legislation that helps to safeguard their company and their financial records. The Sarbanes-Oxley act began in 2002 and the purpose behind this act was to protect organizations, it had a major impact on accounting and record keeping. Because of Enron, they passed this act for publicly-traded corporations to better implement control to their enterprise data. “Named after Senator Paul Sarbanes and Representative Michael Oxley, who also

The Sarbanes-Oxley Act (SOX) was passed by Congress in 2002 as a response to large corporate accounting fraud scandals that resulted from blatant abuse of self-regulation. SOX “is the most far-reaching and significant new federal regulatory statute affecting accountants and governance since the Securities Acts of 1933 and 1934” (Wegman, 2007). The main goal of SOX was to protect investors from fraud by strengthening oversight and improving internal control. In the discussion below are the advantages

stealing or misusing funds in any way. Internal controls also help to zoom in on errors or unintentional mistakes. When these errors are picked up on early it eliminates future problems for the company and its investors down the road. The Sarbanes Oxley Act of 2002 is what enforces such internal controls of companies. This Act requires all United States companies to follow internal control guidelines and standards. Many argue

The Limitations of Section 404 of the Sarbanes-Oxley Act Darren Abraham MSAF 670 University of Maryland University College The Sarbanes-Oxley Act (SOX) is a legislation enacted in 2002 under the sponsorship of U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH). The law introduced increased government oversight for publicly held companies. It also imposes additional management responsibilities and corporate operating costs on companies trading

Due too many fraudulent activities in companies such as Enron, WorldCom, and Tyco International consumers became aware that something needed to change. As a result, Congress passed the Sarbanes-Oxley Act (SOX). SOX gave the public and investors a renewed confidence and strengthen corporate governance to insure that companies are reporting their financial information correctly and accurately. The act requires management and independent auditors to continuously evaluate a firm’s internal financial-reporting

and employees. The creditability of a company’s financial information hinges on its internal control of effectively adhering to governing regulations. According to Epstein (2014) the Sarbanes-Oxley Act of 2002 was established to eradicate companies from submitting fraudulent financial reporting. “The Sarbanes-Oxley Act changes management’s responsibility for financial reporting significantly. The act requires that top mangers personally certify the accuracy of financial reports” Blokhin (2018)

from dishonest workers and outside predators. They are also an accurate series of checks and balances and are in place to find discrepancies. The Sarbanes-Oxley Act of 2002 (SOX) was named after Senator Paul Sarbanes and Michael Oxley. The Act has 11 titles and there are about six areas that are considered very important. (Sox, 2006) The Sarbanes-Oxley Act of 2002 made publicly traded United States companies create internal controls. The SOX act is mandatory, all companies must comply. These controls