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 tale scandals. somewhat participants of the scandals were WorldCom, Enron, and Tyco. According to The Effects of Sarbanes-Oxley on the Public report exertion (2006), The legislation was designed to increase the oversight and ordinance of the accounting profession. By strengthening corporate governance and increase the transparence of financial audits, the Act aimed to restore public self-reliance in corporate America. (p. 1). The act included provisions that draw standards for auditing overseen by the Public Company Accounting Oversight notice (PCAOB); deepen the definition of independence by the auditor to fasten things interchangeable consulting services; made stricter penalties for corporate fraud; and hang the requirements for more(prenominal) in-depth detail of disclosures of financia l information. The felonious financial actions on mole Street over the past several years drop by the wayside forced the federal government to in-act laws to protect investors and the integrity of the grueling market. One of those laws is the Sarbanes-Oxley Act (SOX) of 2002 which has been received with both criticism and praise.

This consummate(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 bang-up resource used in the enforcement the SOX Act. Most of the employees who have claimed whistleblower p! rotection have been dramatically unsuccessful. Mowrey, Cash, & Dickens (2010) stated First, because the voice communication 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 must take after with. These sub-pages are broken down into specialised 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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