Article Review The Sarbanes-Oxley Act of 2002 ARTICLE SYNOPSIS In response to the Enron and WorldCom scandals‚ the Sarbanes-Oxley Act was enacted in July 30‚ 2002. This provides a comprehensive power that modifies the compliance of how companies would need to report their financials to the Securities and Exchange Commission (SEC). The law’s purpose is to solve precise mechanism failures in accounting approaches and requires greater levels of fiduciary responsibilities especially for those
Premium Corporate governance Enron Sarbanes–Oxley Act
2002‚ Congress passed the Sarbanes-Oxley Act‚ known in the industry as SOX‚ as a measure to improve transparency in financial accounting and to prevent fraud. SOX consists of 11 chapters‚ or titles‚ which establish wideranging new regulations for auditors‚ CEOs and CFOs‚ boards of directors‚ investment analysts‚ and investment banks. These regulations are designed to ensure that (a) companies that perform audits are sufficiently independent of the companies that they audit‚ (b) a key executive in
Premium Auditing Audit Internal control
What Is Ethics? Ethics is the part of philosophy that deals with good and evil. Ethics tries to answer questions like: • What actions are good? What actions are evil? • How can we tell the difference? • Are good and evil the same for everyone? • How should we make hard decisions that might help or hurt other people? The Four main studies of ethics are; • Meta-ethics‚ about the theoretical meaning of moral propositions and ethical opinions; • Normative ethics‚ an abstract set of principles
Premium Ethics
SCHOOL OF LAW Year 2013-14 Term 1 LAW001 ETHICS AND SOCIAL RESPONSIBILITY Instructor: David N. Smith Practice Professor‚ School of Law Tel: Email: Office: 6828 0788 davidsmith@smu.edu.sg School of Law‚ Room 4044‚ Level 4 COURSE DESCRIPTION Issues of ethics and social responsibility arise in all professions and all aspects of life. The failure to anticipate‚ recognize and deal effectively with these issues can have serious implications for individuals‚ companies‚ governments
Premium Ethics
Alder et al. (2013)‚ multinational corporate crimes are a widespread and daily problem‚ so politicians have taken the opportunity to implement tougher provision and punishment to protect the public and their workers from corporate crimes through the Sarbanes-Oxley Act in 2002 and the Dodd-Frank Act of 2010. The focuses of these Acts are to protect consumers and improve accountability and transparency
Premium Business ethics Crime Corporation
The problem to be investigated is the effect and consequences of the Sarbanes-Oxley Act. The main purpose of the Sarbanes-Oxley Act of 2002 was to improve the public trust and confidence in financial reporting provided by public companies and increase in the transparency of their reports (Jennings‚ 2012). This paper will investigate the issues covered by SOX‚ additional costs due to the establishment of Sarbanes- Oxley Act and its policies‚ and finally list of government practices that could be
Premium Internal control Auditing Audit
past 10 years when large corporations were found to be fudging the numbers causing thousands and thousands of employees to lose everything when the company went under. The article chosen for this paper is about the importance of educating students on ethics in accounting. It was written by Susan Schott Karr in 2004‚ who frequently writes about business education as a freelance writer out of Chatham N.J. She writes about how accounting scandals in the past have caused more in depth training for employees
Premium Enron Finance Public Company Accounting Oversight Board
costing investors billions of dollars when the share prices of the affected companies collapsed. In response to the public outcry regarding loss of investments through these scandals‚ Jain and Rezaee (2006) stated that the US federal law known as the Sarbanes-Oxley Act of 2002 was enacted on July 30th‚ 2002 to strengthen corporate governance and restore investors’ trust in the capital market. Objective of the study This paper will define the corporate scandals of the past decade using Enron and their
Premium Enron
In response to the growing incidents of fraud and to improve the investors’ confidence and also to rein in the excessive freedom of management which resulted in the corporate scandals‚ USA passed a new act‚ called Sarbanes-Oxley Act 2002. The objective of the act was to bring more reliability and accuracy to corporate disclosures. The new Act required the chief executive(CEO) and financial officers(CFO) to certify the quarterly and annual reports of the company and this made them more accountable
Premium Board of directors Corporate governance Corporation
1. INTRODUCTION Ethics has been perceived as one of the most important factors in establishing good corporate governance. Information Technology (IT) plays an increasing role in helping modern organizations to achieve their goals‚ and it has become critical in creating and implementing effective IT governance mechanisms. The increased use of information technology has raised many ethical issues for today’s IT professional.– Licensing of IT professionals – Internet communication – Intellectual
Premium Ethics Privacy Copyright