Preview

What Is The Sarbanes-Oxley Act Of 2002 Article Review

Satisfactory Essays
Open Document
Open Document
571 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What Is The Sarbanes-Oxley Act Of 2002 Article Review
Sarbanes-Oxley Act of 2002 Article Review

LAW/421
October 8, 2012
Thomas Glenz

Sarbanes-Oxley Act of 2002 Article Review
The Sarbanes-Oxley Act was a daring attempt to legislate morality with the intentions of restoring integrity with the public in financial markets. The Sarbanes-Oxley Act is a direct result from corporate scandals like WorldCom, Enron, Adelphia, and Tyco, which succeeded in the collapse of these major corporation and ruined people’s lives. The mistreatment of employees and investors by flagrantly unethical business practices cost some their life savings and retirement portfolios while others went to jail because they were part of the scandals.
The provision regarding ethics in business contained within

You May Also Find These Documents Helpful

  • Good Essays

    The Sarbanes-Oxley Act (SOX) originated on July 29, 2002 due to fraudulent bookkeeping practices and misleading financial reports from large corporations. These practices created a number of accounting scandals, which resulted in this in the government creating such an act. The purpose was to prevent and punish corporate corruption and, along the way, try to repair investor confidence. The law was passed by congress after well-known companies (Enron, Peregrine Systems and Tyco International, to name a few) caused great humiliations to its investors, which in result cost them billions of dollars. The share prices of the affected companies collapsed, which shook public confidence in the nation’s securities markets.…

    • 433 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Acc291Individual Paper

    • 649 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 (SOX) was created in response to the series of misleading and fraudulent activities of publicly traded big business’s in the 1990s. During this time, multiple large publicly-traded businesses increased their stock prices by “publishing false or deceptive financial statements” (Lasher, 2008, p. 187). The most publicly charged company was Enron, which was then followed by Xerox, WorldCom and Global Crossing. This resulted in millions of dollars of stock market value disappearing in what seemed to be overnight. It is in response to these events that Congress drafted and passed the Sarbanes-Oxley Act of 2002.…

    • 649 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Sarbanes-Oxley Act of 2002

    • 1496 Words
    • 6 Pages

    Sarbanes-Oxley Act of 2002 is the most far-reaching change in organizational control and accounting regulations since the Securities and Exchange Act of 1934. The new law made securities fraud a criminal offense and made more strict penalties for corporate fraud. The law now requires top executives to sign off on their firms financial reports, and they risk fines and long jail sentences if they…

    • 1496 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    The government is charged with the responsibility of protecting its citizens. This responsibility is extended not only to administering punishment through enforcement of legislation but also to preventing occurrences through the enactment of laws to protect their citizens. The government had to act.…

    • 490 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The act enacted in response to financial problems to protect the public from accounting errors and fraud. The act does not specify how a business should store their records; rather, it defines which records are to be stored and for how long they’re going to be stored. The act affects the financial corporations and the IT department. All business records must be saved for more than five years. The consequences for not following the rules are fines, imprisonment, or both. There are several sections to the Sarbanes-Oxley Act that describes the establishment, registration, auditing, quality control, rules, investigations…

    • 382 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Sarbanes-Oxley Act

    • 558 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 (often shortened to SOX) is legislation enacted in response to the highprofile Enron and WorldCom financial scandals to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise. The act is administered by the Securities and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. Sarbanes-Oxley is not a set of business practices and does not specify how a business should store records; rather, it defines which records are to be stored and for how long. The legislation not only affects the financial side of corporations, it also affects the IT departments whose job it is to store a corporation's electronic records. The Sarbanes-Oxley Act states that all business records, including electronic records and electronic messages, must be saved for "not less than five years." The consequences for non-compliance are fines, imprisonment, or both. IT departments are increasingly faced with the challenge of creating and maintaining a corporate records archive in a cost-effective fashion that satisfies the requirements put forth by the legislation. FAQ: What is the impact of Sarbanes-Oxley on IT operations? The following sections of Sarbanes-Oxley contain the three rules that affect the management of electronic records. The first rule deals with destruction, alteration, or falsification of records.…

    • 558 Words
    • 3 Pages
    Satisfactory Essays
  • Better Essays

    The Sarbanes-Oxley Act

    • 1467 Words
    • 6 Pages

    Sarbanes-Oxley Act Section 409 is the section that is relevant to Real Time Issuer Disclosures. In this section the issuers are obliged to reveal to the community, on a pressing basis, instructions on a significant transformation in their financial situation for ventures. Nevertheless, these discoveries are to be offered in conditions that are unproblematic to grasp, maintained by tendency and qualitative material of vivid appearances as applicable (The Sarbanes-Oxley Act 2002,…

    • 1467 Words
    • 6 Pages
    Better Essays
  • Satisfactory Essays

    Sarbanes-Oxley Act

    • 504 Words
    • 3 Pages

    The Sarbanes-Oxley Act of 2002 is an act passed by U.S. Congress in 2002 to protect investors and the general public from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act authorized strict modifications to improve financial disclosures from corporations and to prevent accounting fraud. This law was passed after a couple of big the accounting scandals like Enron, Tyco, and WorldCom shook investor assurance in financial statements and required an overhaul of regulatory standards. The act is administered by the Securities and Exchange Commission, which sets deadlines for compliance and publishes rules on requirements. It is not a set of business practices and does not specify how a business should store records; rather it tells more which records are to be stored and for how long in case of hearings.…

    • 504 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Sarbanes-Oxley

    • 1874 Words
    • 8 Pages

    The Sarbanes-Oxley Act of 2002 was created by sponsors U.S. Senator Paul Sarbanes(D-MD) and U.S. Representative Michael G. Oxley (R-OH) in response to very public corporate fraud and accounting scandals. In a seemingly short period of time, Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom all collapsed. The majority of these scandals resulted from the inaccurate reporting of financial transactions. The financial statements of these organizations were so gravely misrepresented and misstated that once the organizations' records were presented fairly, it caused the total collapse of the company. As a result of these scandals, investors lost billions of dollars when the share prices collapsed, and the public lost confidence in the nation's securities markets and the auditor who were supposed to protect the public's interest.…

    • 1874 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    The Sarbanes-Oxley Act

    • 2083 Words
    • 9 Pages

    Chapter 5: the Sarbanes- Oxley act of 2002 involved the public anger that started when Enron, WorldCom, and other big companies scandals. This is when there was support for white collar crime when it came to accounting standards. Under the law of federal sentencing rules to make sure that white collar criminals are being punished. (Barnes, 2012). 1. For someone to alter or get rid of documents and there intensions to obstruct or effect the crime/case. 2. The CEO (chief executive officer) and the CFO (chief financial officer) must clarify that repots have been submitted to the SEC (securities and exchange commission.) it is a crime if the CEO and CFO make a report that is false. 3 CEO and CFO must reimburse the company for any raises and if…

    • 2083 Words
    • 9 Pages
    Better Essays
  • Good Essays

    Hayes, Chris. 2013. Fox 2 News Article: St. Louis City daycare shut down. Retrieved from…

    • 852 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In the corporate world today the rules and regulations are stricter than they were in early 2000. The development of corporate governance that established procedures to be used by officers and directors for lines of responsibility, approval, oversight by key stockholders, and set the rules for corporate decision making became more extreme. The Sarbanes-Oxley Act (SOX) of 2002 made the use of ethical decision making more prominent in today's business environment. The SOX Act established the penalties for both criminal and civil charges as well as those in the corporate world are not protected. The term "piercing the corporate veil" become a household phrase thanks to Bernard Ebbers, former WorldCom boss.…

    • 745 Words
    • 3 Pages
    Good Essays
  • Good Essays

    In the image "Going to the Olympics," by Frank Romero, he used specific images to symbolize the city of Los Angeles. In the top of the painting we can observe a couple of men fighting and a horse. The two men fighting might represent the effort that the city has made to get where they are at this point, while the horse might represent the power that the people have when they're together. It also shows five cars, each with a heart above, which might mean all the missions in California and how lovely the people of California is.…

    • 499 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Auditing paper

    • 3045 Words
    • 8 Pages

    The Sarbanes Oxley Act of 2002 is made up of many sections, I am going to focus on the sections that I feel have the most importance and offer the greatest benefits. My intention is to describe the purpose of each section along with any pros and/or cons that may sway my opinion one way or another.…

    • 3045 Words
    • 8 Pages
    Powerful Essays
  • Satisfactory Essays

    RE: Sarbanes-Oxley Act of 2002 Lowell, C. H. (2002). Sarbanes-oxley act of 2002. Journal of International Taxation, 13(12), 6-9+. Retrieved from http://search.proquest.com/docview/232059342?accountid=458…

    • 250 Words
    • 1 Page
    Satisfactory Essays