The Implications of the Sarbanes Oxley Act on the Accounting Profession Abstract On July 30‚ 2002‚ the Sarbanes Oxley Act (also known as SOX) was signed into law by President George W. Bush. The Sarbanes Oxley Act of 2002 is a federal law that set new or improved standards for all U.S. public company boards‚ management and public accounting firms. Covered in the eleven titles are additional corporate board responsibilities‚ auditing requirements and criminal penalties. This
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The Sarbanes-Oxley Act of 2002 (Public Company Accounting Reform and Investor Protection Act‚ Pub.L. 107-204‚ July 30‚ 2002‚ 116 Stat. 745‚ July 30‚ 2002) was enacted by Congress in the wake of corporate and accounting scandals that led to bankruptcies‚ severe stock losses‚ and a loss of confidence in the Stock Market. The act imposes new responsibilities on corporate management and criminal sanctions on those managers who flout the law. It makes Securities fraud a serious federal crime and also
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The Acts imposed by Great Britain in 1754 and 1775 were Coercive Acts. The Coercive Acts were written by Thomas Jefferson. According to‚ Libertarianism.org “The Coercive Acts are called the intolerable Acts and are amounted to the declaration of martial law in Boston” (Libertarianism.org). Also‚ other acts that were imposed by Great Britain during 1754 and 1775 were the Murder Act‚ Quebec Act‚ and the Criminal Act. According to‚ Libertarianism.org “The Murder act was unfair because all Bostonians
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other high level executives‚ the imposition of very small fines and no prison time for devastating frauds‚ and a lack of independence of external auditors and the board of directors. With this in mind‚ I believe five advantages of the Sarbanes-Oxley Act of 2002 to be: 1. That it holds CEO’s accountable for internal controls so that they cannot claim that they did not know or understand what was happening in their company and place the responsibility for fraud on lower level staff (Section 302 and 404)
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English 132.53 8 May 2013 The National Security Act vs. the fourth amendment; The rights of the American people set in place in 1791 becoming dim and gray in the eyes of the government. The uproar that was created by the government on June 06‚ 2013 was enough to catch the ears of all Americans. The fourth amendment was being over ruled. No one knew how to stop‚ what this will lead too and who gave the government the power to do it. Or could it be something more sinister. A bylaw set in place
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In 1970 the Controlled Substances Act (CSA) was put into place by the Congress of the United States Government. This Act‚ Title II of the Comprehensive Drug Abuse Prevention and Control Act‚ is the federal U.S. drug policy which regulates the possession‚ use‚ manufacturing and importation of certain controlled substances. The substances controlled under this act fall under various classifications. These classifications are known as schedules. The legislation created 5 schedules with different
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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
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SARBANES-OXLEY ACT ACC 403- AUDITING PROFESSOR August 19‚ 2012 The Sarbanes-Oxley Act was placed into effect July 2002; the act introduced major changes to the regulation of corporate governance and financial practice. The Sarbanes-Oxley Act was named after Senator Paul Sarbanes and Representative Michael Oxley‚ who were the main architects that set a number of non-negotiable deadlines for compliance. The organization for Economic Cooperation and Development was one of the first non- government
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---------- -3- * Accountants independence resulting in a higher responsibility of accountants------- -4- * Fraud decrease as a consequence of increased transparency of financial reporting -- -5- 3. The second effect of Sarbanes-Oxley Act: the education sphere of accounting * New informational sources ------------------------------------------------------------------- -7- * SOX coverage at Business/Economics colleges of the USA----------------------------- -8- * How business
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the Sarbanes-Oxley Act Dariya Gogueva Kaplan University Cost/Benefit Analysis of the Sarbanes-Oxley Act US Congress passed the Sarbanes – Oxley Act (SOX) in 2002 in response to massive corporate and accounting scandals in companies such as Enron‚ WorldCom‚ and Tyco. The purpose of SOX was to improve the corporate behavior in the US‚ in order to prevent fraud and to gain investors’ trust and confidence in the market by implementing rules and restrictions. Since SOX Act has been effective
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