Positive & Negative Affects That Sarbanes Oxley
This written assignment will present and discuss the positive and negative affects that Sarbanes Oxley has on publicly traded corporations, the accounting professions, and financial statement users. I will use different resources in order to discuss these two sides and concentrate more in the actual Sarbanes-Oxley Act of 2002. Sarbanes-Oxley was created to improve quality and transparency in financial reporting, independent audits, and accounting services for public companies. SOX was also established to create a Public Company Accounting Oversight Board, to enhance the standard setting process for accounting practices, to strengthen the independence of firms that audit public companies, to increase corporate responsibility and the usefulness of corporate financial disclosure, to protect the objectivity and independence of securities analysts, to improve Securities and Exchange Commission resources and oversight, and for other purposes. (SOX 2002)
First, I am going to start discussing the positive and negative effects of publicly traded corporations. Based on Sarbanes-Oxley, I found information about publicly traded corporation in Title III, section 302. The regulations states that every commission must report periodically under section 13(a) or 15(d) of the Securities Exchange Act of 1934. The principal executive officer and the principal financial officer performing similar functions must certify in each annual or quarterly report filed or submitted that:
1. It was revised by the one signing it.
2. To make sure that the reports do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements. Making sure that those statements were not false.
3. Based on the officer 's knowledge, the financial statements, and other financial information included in the report, reasonably present in all material respects the financial condition and results of operations of the issuer as of, and for, the
First, I am going to start discussing the positive and negative effects of publicly traded corporations. Based on Sarbanes-Oxley, I found information about publicly traded corporation in Title III, section 302. The regulations states that every commission must report periodically under section 13(a) or 15(d) of the Securities Exchange Act of 1934. The principal executive officer and the principal financial officer performing similar functions must certify in each annual or quarterly report filed or submitted that:
1. It was revised by the one signing it.
2. To make sure that the reports do not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements. Making sure that those statements were not false.
3. Based on the officer 's knowledge, the financial statements, and other financial information included in the report, reasonably present in all material respects the financial condition and results of operations of the issuer as of, and for, the
Cited: AICPA. 2002. Summary of Sarbanes-Oxley Act of 2002. aicpa.org. Retrieved July 1, 2006 from http://www.aicpa.org/info/sabarnes_oxley_summary.htm Franklin Strier. 2006. Proposal to Improve theimage for the Public Accounting Profession. The CPA Journal. Retreved July 9, 2006 from http://www.nysscpa.org/printversions/cpaj/2006/306/p67.htm Paul Lowengrub. 2005. The Impact of Sarbanes Oxley on Companies, Investors, & Financial Markets. Sarbanes-Oxley Compliance Journal. Retrieved July 1, 2006 from http://www.s-ox.com/Feature/detail.cfm?ArticleID=1385 Oxley. 2002. Conference Report. 107th Congress Report "2d Session HOUSE REPRESENTATIVES ! 107-610 SARBANES-OXLEY ACT OF 2002. Retrieved from Sarbanes-Oxley Act of 2002. Bob Shelper. 2002 Sarbanes-Oxley Act of 2002. fei.org. Retrieved February 8, 2006 from http://www.fei.org/download/shepleranalze.pdf