Sarbanes-Oxley Act Brandie Cortinas ENGL 145(D-21) 5-12-14 Ms. Vivian Abstract 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
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Impact of Unethical Behavior The impact of unethical behavior is wide spread‚ and does unimaginable damage to people‚ and business alike. The results of unethical behavior on the grandest scale would be Enron‚ Tyco‚ and Global Crossing‚ or WorldCom. Greed led to accounting abuses‚ cover ups and every day people becoming whistle blowers. Manipulating financial reports is illegal and unethical because the financial records are supposed to show the core financial results
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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
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the author suggests that management is making better ethical decisions simply because they were caught making unethical ones. In a different publication‚ “Did Enron and SOX Change Ethical Behavior at U.S. Companies?”‚ the study suggests that even after legislation had been put in place to avoid these
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transactions” included a. Overstating revenue and profits b. Improperly enriching several executives c. Circumventing accounting rules for the valuation of treasury shares d. All of the above 12. Arthur Andersen acted in the following roles for Enron: a. Auditor
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M. Parry; Joseph M. Schmerling; Jaime Ulloa Auditing Theory and Practice 0902 ACCT422 4021 Due: April 29‚ 2009 Table of Contents Page Number What is the Sarbanes-Oxley Act of 2002? 3 Why was SOX established? 4 When did SOX take effect? 5 What companies were affected and how? 6 What does SOX compliance require? 9 Conclusion 11 References 13 What is the Sarbanes-Oxley Act of 2002? The Sarbanes-Oxley Act of 2002 – its official name being “Public Company Accounting Reform and Investor Protection
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misleading and untrustworthy reports to the clientele may dare the likeness of the firm which may tremble the interest of the outer parties inside the company. Few of the businesses which have demonstrated the interpreted financial statistics are WorldCom and Enron have drove to disasters‚ as a result of which investors‚ shareholders and others have to cause enormous quantity of losses‚ when these businesses proclaim bankruptcy‚ years after a healthy financial reports. The principal point of such type
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mechanical‚ and electronic controls so that when jobs are segregated‚ there are more than one opportunities for a final verification of accuracy (Weygandt‚ Kimmel‚ & Kieso‚ 2008). Large events of fraud have happened within companies such as Enron and WorldCom (Weygandt‚ Kimmel‚ & Kieso‚ 2008). People generally remember only these because they are some of the most popular scandals in business history (Weygandt‚ Kimmel‚ & Kieso‚ 2008). However‚ there are many more reported each year. Because
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overstating the value of corporate assets or underreporting the existence of liabilities‚ and overstating of revenues. Some of the companies involved in the creating accounting practice in the late 1990s and early 2000s were Enron‚ Tyco‚ Global Crossing‚ Waste Management‚ WorldCom‚ etc. These scandals cost investors billions of dollars due to the collapse of these companies and damaged public confidence in the securities markets. Congress reacted to the scandals by enacting a bill on July 30th‚ 2002
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3 Enron 3 Sarbanes-Oxley Act 3 11 Titles 4 Major Sections of SOX 5 Section 302 5 Section 404 6 Section 409 6 Section 902 7 Section 906 7 After SOX: What has Sarbanes-Oxley Accomplished & Issues that Remain 7 Conclusion 8 Overview The Sarbanes-Oxley Act was signed into law in 2002 by President Bush. Sarbanes- Oxley came to be because of corporate level accounting scandals that had then‚ recently occurred. The most common of these scandals include: Adelphia‚ Enron‚ Peregrine
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