The Sarbanes-Oxley Act

The Sarbanes-Oxley Act The Sarbanes-Oxley Act, commonly referred to as SOX, was created in July 2002 by the US Congress. This symbolise came about because of a wave of corporate bill scandals. somewhat participants of the scandals were WorldCom, Enron, and Tyco. According to The Effects of Sarbanes-Oxley on the Public write up exertion (2006), The legislation was designed to increase the oversight and prescript of the accounting profession. By strengthening corporate governance and increase the transparence of financial audits, the Act aimed to restore public corporate trust in corporate America. (p. 1). The act included provisions that class standards for auditing overseen by the Public Company Accounting Oversight poster (PCAOB); deepen the definition of independence by the auditor to bounce things interchangeable consulting services; made stricter penalties for corporate fraud; and touch on the requirements for more(prenominal) in-depth detail of disclosures of financial information. The felonious financial actions on mol Street over the past several years forsake forced the federal government to in-act laws to protect investors and the integrity of the form market. One of those laws is the Sarbanes-Oxley Act (SOX) of 2002 which has been received with both criticism and praise.

This perfect(a) law contains additional corporate board responsibilities to criminal penalties for corrupt acts and allows for owing(p)er oversight. Besides auditing company financials, whistle blowers are a swell resource used in the enforcement the SOX Act. Most of the employees wh o have claimed whistle-blower protection hav! e been dramatically unsuccessful. Mowrey, Cash, & Dickens (2010) stated First, because the linguistic communication poem of the Act indicates that such protection does exist (p. 432). along with the new-made law of Sarbanes-Oxley Act, the federal government has included sub-pages which companies moldiness take after with. These sub-pages are broken down into particular(prenominal) sections in how the issuers must provide their accounting...If you want to get a full essay, nightspot it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper