Sarbanes Oxley Act

Executive Summary: Financial reporting has been dissected everyplace and over again by legislation. The U.S. Securities and Exchange Com delegating (SEC) ward the key to providing protection and integrity when companies atomic number 18 submitting their financial statements. Although their mission is to provide lodge and efficiency for financial markets, insidious plans are still developed by companies which ultimately result in turmoil to the economy. To provide a safeguard to investors, the Sarbanes-Oxley Act (SOX) was passed by congress in 2002, which was constructed because of fraudulent acts of well-known companies such as Enron. Before the SOX was inaugurated, two sets of accounting rules were used as guides for certified public accountant firms. These two practices were GAAP, which stands for Generally veritable Accounting Principles and GAAS, which stands for Generally Accepted Auditing Standards. Creditability was the basic foundation for both of these principles, but had to be enforce with the Sarbanes Oxley Act when corporate scandals became prevalent. In order to gain a better understanding of SOX, which has superseded the rules of GAAS and GAAP, an analysis was conducted on four issues that interrelate to the Act.

The four issues at hand are: the CEOs and CFOs of public companies, department 404 on inhering control, the main advantages and disadvantages, and what changes should be made to SOX. Finally, a discussion just about how legislation cannot guarantee the accuracy of public financial statements pull up stakes be examined. Along with this issue, Team Nitpickers will dig deeper and take in into reasons as to why CEOs and CFOs are paying closer attention to this law. The CEOs and CFOs of Public Companies Internal Controls This section discusses how Section 404 of the SOX is likely to affect the issue of internal controls. Section 404 was intend to enhance the quality of reporting and increase investor confidence (Office of economical Analysis, 2009). Section 404 of the SOX, entitled... If you want to get a full essay, order it on our website: Orderessay

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