Sarbanes-Oxley Act of 2002
Sarbanes-Oxley Act of 2002
Week # 2 Individual Assignment
Sox Key Main Aspects for a Regulatory Environment
Sarbanes-Oxley Act was passed in 2002 by former president George Bush. Essentially to combat the Enron crisis. The Sox Act basically has regulatory control and creates an enviroment that is looking out for the public. Ideally this regulatory environment protects the public from fraud within corporations. Understanding, that while having this regulatory control at times the Sox requirements need to be tweaked or amended. Not only now but in the future as well. The main aspects of the Sox act are essentially looking out for our welfare as a consumer. Our government has the obligation to regulate and facilitate any rules to enforce with a corporation to protect the American people.
The Sarbanes-Oxley Act of 2002 came into its own in the summer of 2002. The act got its name from Senator Paul Sarbanes and Representative Michael Oxley. Essentially these two gentlemen were the founding fathers of this act. They set up the framework for compliance and regulatory controls. The Sox is formatted with 11 different titles, however for compliance regulations there are six important sections. These sections are; 302,401,404,409,802, and 906. Each one of these is the backbone of the Sarbanes-Oxley Act.
One section in particular is a key component to hold corporations accountable; that would be section 302 of the Sox act. Essentially making both the CEO and CFO sign off on all financial documents. This is huge for any company. The reason being it holds people accountable, which in any business is essential for its own sustainable success. If the CEO has to review every financial document and essentially is putting his career on the line and to avoid a jail term. Each financial document is going to be scrutinized by him before he signs off of the financials.
Another important article of the six is section 401 of the
Week # 2 Individual Assignment
Sox Key Main Aspects for a Regulatory Environment
Sarbanes-Oxley Act was passed in 2002 by former president George Bush. Essentially to combat the Enron crisis. The Sox Act basically has regulatory control and creates an enviroment that is looking out for the public. Ideally this regulatory environment protects the public from fraud within corporations. Understanding, that while having this regulatory control at times the Sox requirements need to be tweaked or amended. Not only now but in the future as well. The main aspects of the Sox act are essentially looking out for our welfare as a consumer. Our government has the obligation to regulate and facilitate any rules to enforce with a corporation to protect the American people.
The Sarbanes-Oxley Act of 2002 came into its own in the summer of 2002. The act got its name from Senator Paul Sarbanes and Representative Michael Oxley. Essentially these two gentlemen were the founding fathers of this act. They set up the framework for compliance and regulatory controls. The Sox is formatted with 11 different titles, however for compliance regulations there are six important sections. These sections are; 302,401,404,409,802, and 906. Each one of these is the backbone of the Sarbanes-Oxley Act.
One section in particular is a key component to hold corporations accountable; that would be section 302 of the Sox act. Essentially making both the CEO and CFO sign off on all financial documents. This is huge for any company. The reason being it holds people accountable, which in any business is essential for its own sustainable success. If the CEO has to review every financial document and essentially is putting his career on the line and to avoid a jail term. Each financial document is going to be scrutinized by him before he signs off of the financials.
Another important article of the six is section 401 of the
References: Addison-Hewitt Associates. (2006). A Guide To The Sarbanes-Oxley Act. Retrieved from http://www.soxlaw.com/ Investopedia ,(2014). Sarbanes-Oxley Act of 2002-SOX. Retrieved from http://www.investopedia.com/ Rouse, Margret. (2007). Definition of Sarbanes-Oxley Act. Retrieved from http://searchcio.techtarget.com/definition/Sarbanes-Oxley-Act Brite, Clayton. (2013). Is Sarbanes-Oxley A Failing Law? University of Chicago Undergraduate Law Review. Retrieved from; http://uculr.com/articles/2013/6/30/is-sarbanes-oxley-a-failing-law