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 fib scandals. somewhat participants of the scandals were WorldCom, Enron, and Tyco. According to The Effects of Sarbanes-Oxley on the Public accounting system exertion (2006), The legislation was designed to increase the oversight and mandate of the accounting profession. By strengthening corporate governance and increase the transparence of financial audits, the Act aimed to restore public boldness in corporate America. (p. 1). The act included provisions that denounce standards for auditing overseen by the Public Company Accounting Oversight posting (PCAOB); deepen the definition of independence by the auditor to characterize things interchangeable consulting services; made stricter penalties for corporate fraud; and situate the requirements for more(prenominal) in-depth detail of disclo sures of financial information. The felonious financial actions on mol Street over the past several years deliver forced the federal government to in-act laws to protect investors and the integrity of the strenuous market. One of those laws is the Sarbanes-Oxley Act (SOX) of 2002 which has been received with both criticism and praise.

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

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