Sarbanes-Oxley To The Principles Of The COSO Framework
Comparing the Requirements of Sarbanes-Oxley to the Principles of the COSO Framework
Claudette Zuokemefa
Walden University
Managing Operational and Financial Business Risks ACCT 6600/ACMG 6600/MMBA 6784
Dr. Wendy W. Achilles, CPA
June 22, 2015 Comparing the Requirements of Sarbanes-Oxley to the Principles of the COSO Framework
This paper will address how do the requirements of the Sarbanes-Oxley Act (SOX) support or contradict the principles of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework.
First, the Sox act was established in 2002, as a response to the corporate and accounting scandals such as Enron and WorldCom who swindle their shareholder out of millions, the purpose for the act is to protect the rights of investors (Fraser & Simkons, 2010, p. 351). With the enactment of SOX, it improves the accurateness of corporates disclosures in order to be consistent with the securities laws. The SOX act officially and legally applies to Securities and Exchange Commission (SEC) publicly traded companies (Fraser & Simkons, 2010). …show more content…
375)- The principles and application of internal control under section 404 of SOX, the COSO framework and supplementary assessment tools provides the background for evaluation of internal control over financial reporting by management under section 404 of SOX(Fraser & Simkons,
Claudette Zuokemefa
Walden University
Managing Operational and Financial Business Risks ACCT 6600/ACMG 6600/MMBA 6784
Dr. Wendy W. Achilles, CPA
June 22, 2015 Comparing the Requirements of Sarbanes-Oxley to the Principles of the COSO Framework
This paper will address how do the requirements of the Sarbanes-Oxley Act (SOX) support or contradict the principles of the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Framework.
First, the Sox act was established in 2002, as a response to the corporate and accounting scandals such as Enron and WorldCom who swindle their shareholder out of millions, the purpose for the act is to protect the rights of investors (Fraser & Simkons, 2010, p. 351). With the enactment of SOX, it improves the accurateness of corporates disclosures in order to be consistent with the securities laws. The SOX act officially and legally applies to Securities and Exchange Commission (SEC) publicly traded companies (Fraser & Simkons, 2010). …show more content…
375)- The principles and application of internal control under section 404 of SOX, the COSO framework and supplementary assessment tools provides the background for evaluation of internal control over financial reporting by management under section 404 of SOX(Fraser & Simkons,