Goals of Sox
Question 1: What are the primary goals and tenets of SOX with respect to fraud?
The Sarbanes-Oxley Act of 2002 was created to reduce financial statement fraud by two main congressmen; Senator Paul Sarbanes and Representative Michael OXLEY. The primary goal of the SOX was to fix auditing of US public companies , also SOX improvement of the quality of audits in an attempt to eliminate fraud in order to protect the public’s interest, as well as for the protection of the investors (Donaldson, 2003). The necessity of implementation of a security measure that would protect the investor and the public leads SOX to augment the role of auditors in enforcing federal securities laws against fraud and theft within public companies
.( read on http://www.Sarbanes-Oxley-And-The-Pcaob-1018426.html).
Question 2: How is SOX enforced?
The Sarbanes-Oxley Act is enforced by the Securities and Exchange Commission (SEC); SOX relies on the SEC to implement rulings in accordance with the law. The Sarbanes-Oxley Act aided in the restoration of investor confidence by strengthening enforcement of the federal securities laws.
The ACT authorized the SEC to issue implementation rules on many on its provisions intended to improve corporate governance, financial reporting and audits functions.
Additionally, SOX created the Public Accounting Oversight Board (PCAOB) to aid in the enforcement of their mandates (Coates, 2007)
(read on our textbook)
Question 3 :What is PCAOB ,its role, and based upon your individual research, is it an effective oversight body? The PCAOB is the Public Company Accounting Oversight Board that was established by Congress under Title 1 of the Sarbanes-Oxley Act to oversee and enforce the act. The role of the PCAOB : - Register public accounting firms (foreign and domestic) that prepare audit reports for issuers.
- Establish, or adopt ,by rule, auditing quality control, ethics, independence and other standards relating to the preparation of audits reports
The Sarbanes-Oxley Act of 2002 was created to reduce financial statement fraud by two main congressmen; Senator Paul Sarbanes and Representative Michael OXLEY. The primary goal of the SOX was to fix auditing of US public companies , also SOX improvement of the quality of audits in an attempt to eliminate fraud in order to protect the public’s interest, as well as for the protection of the investors (Donaldson, 2003). The necessity of implementation of a security measure that would protect the investor and the public leads SOX to augment the role of auditors in enforcing federal securities laws against fraud and theft within public companies
.( read on http://www.Sarbanes-Oxley-And-The-Pcaob-1018426.html).
Question 2: How is SOX enforced?
The Sarbanes-Oxley Act is enforced by the Securities and Exchange Commission (SEC); SOX relies on the SEC to implement rulings in accordance with the law. The Sarbanes-Oxley Act aided in the restoration of investor confidence by strengthening enforcement of the federal securities laws.
The ACT authorized the SEC to issue implementation rules on many on its provisions intended to improve corporate governance, financial reporting and audits functions.
Additionally, SOX created the Public Accounting Oversight Board (PCAOB) to aid in the enforcement of their mandates (Coates, 2007)
(read on our textbook)
Question 3 :What is PCAOB ,its role, and based upon your individual research, is it an effective oversight body? The PCAOB is the Public Company Accounting Oversight Board that was established by Congress under Title 1 of the Sarbanes-Oxley Act to oversee and enforce the act. The role of the PCAOB : - Register public accounting firms (foreign and domestic) that prepare audit reports for issuers.
- Establish, or adopt ,by rule, auditing quality control, ethics, independence and other standards relating to the preparation of audits reports