Questions On The Sarbanes Oxley Act - 1172 Words

BUL 6890: SPECIAL TOPICS IN BUSINESS LAW MACC PROGRAM ASSIGNMENT #2 Throughout our academic studies, we have been taught what the Sarbanes-Oxley Act is and what it represents. However, professors have left behind the topic of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and have focused mainly on teaching about the Sarbanes-Oxley Act. In this paper I will further explain both of these fundamental terms, some of the major provisions of Sarbanes-Oxley Act and Dodd-Frank, and the pros and cons for some of the provisions targeted by the legislation. To conclude, I will also state where I stand personally and professionally on these issues. It all started at the beginning of the 21st century, with the findings of financial loopholes of companies we are very familiar with such as, Enron, WorldCom, and Arthur Andersen, which compelled Congress to pass the Sarbanes-Oxley Act, mostly known as SOX, on July 23, 2002. SOX adapted its name from its underwriters, Senator Paul Sarbanes and Michael G. Oxley. Due to all the commotion that h appened with Enron and WorldCom, investors and the public started to loose confidence and the economy was damaged by such arousal. Congress intentions’ to pass this Act was to try to bring back investor’s confidence by enlightening the truthfulness and trustworthiness of corporate disclosures and financial statements. SOX established new standards for corporate responsibility as well as new punishments for acts ofShow MoreRelatedThe Sarbanes Oxley Act ( Sox ) For A Company1461 Words   |  6 Pagesto try to describe the cost and benefits of implementing the Sarbanes Oxley Act (SOX) for a company. I will then move on to describe what it is, how to go about it, and what a company may need to properly implement it. The Sarbanes Oxley Act was approved and activated in 2002 to protect investors and to renew confidence in American companies from what happened with the fall of companies like Enron, HealthSouth, and WorldCom. This act was trusted to fix or find corruption in the companies and makeRead MoreThe Sarbanes Oxley Act ( Sox ) For A Company1280 Words   |  6 Pagesto try to describe the cost and benefits of implementing the Sarbanes Oxley Act (SOX) for a company. I will then move on to describe what it is, how to go about it, and what a company may need to properly implement it. The Sarbanes Oxley Act was approved and activated in 2002 to protect investors and to renew confidence in American companies from what happened with the fall of companies like Enron, HealthSouth, and WorldCom. This act was trusted to fix or find corruption in the companies and makeRead MoreThe Creation of Sarbanes Oxley1406 Words   |  6 PagesThe Creation of Sarbanes Oxley Introduction In 2002, the Sarbanes Oxley Act was ratified to address critical challenges impacting the way all firms are reporting financial information. Since this happened, a variety of companies have been implementing these standards using different techniques. In the case of IT activities, these provisions are designed to enhance reporting and communication. To fully understand the impact of the law on IT requires examining if Sarbanes Oxley is not already embracedRead MoreThe Sarbanes Oxley Act Of 2002 Essay1070 Words   |  5 Pagesof Sarbanes-Oxley Act of 2002. This Act was placed into law to protect the consumer against fraudulent activity by organizations. This paper will provide a brief history of the law and discuss some of the ethical components and social implications on corporations. This research will provide information on how the Sarbanes-Oxley Act affects smaller organizations and how it encourages employees to inform of wrong doings. Brief Synopsis of Sarbanes-Oxley The U.S. Congress passed the Sarbanes-OxleyRead MoreOverview of the Sarbanes-Oxley Act1068 Words   |  4 Pagesï » ¿Sarbanes-Oxley Act Introduction The Sarbanes-Oxley Act was signed into law on July 30, 2002, by President George W. Bush; it was a congressional regulatory response to the enormously damaging corporate scandals at WorldCom, the Arthur Anderson accounting group and most notoriously, Enron. Because of the damage done not only to the reputations of those corporations and to the American corporate community but also to the stockholders and people who lost life savings (people who lost 401-K investmentsRead MoreCorporate Responsibility Of The Sarbanes Oxley Act1353 Words   |  6 PagesIt is clear that the bringing about of the Sarbanes-Oxley Act followed up one of the rougher times in US corporate history. The public downfall of the large companies like Enron and WorldCom damaged any trust in US corporations and it cost investors many billions of dollars. It even led to the destruction of one of the largest accounting firms in the US, Arthur Anderson. Sarbanes-Oxley Act was the response that the government gave in hop es that by mandating that companies report honest, accurateRead MoreBus 591 Complete Week 5624 Words   |  3 PagesWeek 5 DQ 2 Colgate’s Annual Report Colgate’s Annual Report. Obtain a copy of Colgate’s annual report from the Ashford Online Library or from a valid academic source found elsewhere on the Internet. Use this information to answer the following questions. If researching online, go to the Colgate company website (http://www.colgate.com). Use the ratios discussed in Chapter 11 (dividend payout ratio and return on common stockholders’ equity) to evaluate Colgate’s dividend and earnings performance fromRead MoreSarbanes-Oxley Act of 2002985 Words   |  4 Pages Sarbanes-Oxley Act of 2002 Week # 2 Individual Assignment â€Æ' Sox Key Main Aspects for a Regulatory Environment Sarbanes-Oxley Act was passed in 2002 by former president George Bush. Essentially to combat the Enron crisis. The Sox Act basically has regulatory control and creates an enviroment that is looking out for the public. Ideally this regulatory environment protects the public from fraud within corporations. Understanding, that while having this regulatoryRead MoreSarbanes Oxley1476 Words   |  6 Pagesfirms. Sarbanes Oxley has made many changes to many companies. The major financial scandals have impacted many investors and required more regulations to avert this problems. Sarbanes Oxley has tried to increase ethics in the upper management in many public companies. The upper management has tried to improve on social responsibility and increase the public view. There are many critics to Sarbanes Oxley and many different suggestions on improvements. History of Sarbanes-Oxley Act ScandalsRead MoreSarbanes Oxley Act And Its Effect On Businesses1542 Words   |  7 Pagesthe Sarbanes-Oxley Act. In 2002 the Sarbanes-Oxley Act passed by the U.S. Congress to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures. With the research I have done I believe that with the act being accepted and pass made a big change for all organizations, large and small. Keywords: U.S Congress, Organizations,Research, Sarbanes-Oxley, Accounting the Sarbanes-Oxley