The Sarbanes-Oxley Act of 2002 Name Tutor Institution Course Date Introduction The numerous scandals that involved corporate and investors in the year 2002 such as Enron‚ WorldCom and Tyco came as shock to many investors in the United States. Many investors lost their money to fraudulent activities by accountability corporate making them loose confidence in financial statements provided. Such loses created concern within the government prompting them to overhaul all the
Premium Internal control Enron
Sarbanes Oxley Act of 2002 Daniel Alvalle BUS 670 Legal Environment Instructor: Peter McCann 7/29/2013 If you were an investor would you want your money protected? Would you be skeptical about investing in companies since the securities fraud scandals that have happened recently? The answer is most likely‚ “yes”‚ to a certain degree. With the news about unethical business practices and companies not following regulatory guidelines‚ it is difficult to ignore the risk that is involved
Premium Enron Public company Finance
Account for the initial consolidation of Nazi power in 1933 - 1934 Due to the failure of the Weimar Republic and general public dissatisfaction arising from poor economic conditions exacerbated by the Treaty of Versailles‚ coupled with the 1929 Wall Street Crash‚ German citizens were understandably desperate for change. Until this point in time the Nazi party‚ and Hitler‚ had been essentially unpopular. However‚ the economic situation ensured Hitler’s increasing popularity as the people looked
Premium Adolf Hitler Nazi Germany Nazism
The Securities Exchange Act of 1934 JFM GM520 - Legal Political & Ethical Dimensions of Business April‚ 12 2010 The Securities Exchange Act of 1934 was passed by congress to strengthen the government’s control of the financial markets. It was preceded by the Securities Exchange Act of 1933 which was enacted during the Great Depression in hopes that the stock market crash of 1929 would not be repeated. The basic difference between the two acts was that the 1933 Act was to govern the original
Premium Stock market Stock Generally Accepted Accounting Principles
and entrepreneurs‚ creating fear and confusion‚ and discouraging risk-taking and corporate growth.” (Mishra‚ 2011) SOX Act has made it more cost effective and low risk for businesses by outsourcing and layoffs. Companies used to spend three to four days at meetings to decide how to save and their companies strategic plans. After 2002 they now go over the requirements of the SOX compliance requirements. “Sarbanes-Oxley was enacted as a regulatory response to corporate scandals a decade ago for
Premium Corporate governance Corporation Management
scandals were the Enron financial criminal activities caused the company to filed bankruptcy in 2001. Their financial misconduct led to the company being charged and found guilty of illegal accounting practices. These scandals and actions reported many inaccurate information. The problems were not at the lower level‚ but the top executive levels were the problems. Due to many of these unethical financial activities‚ the stock financial reporting was inaccurate. The SOX Act was constructed to improve
Premium
The Sarbanes-Oxley act was created in 2002‚ requiring companies to have more sufficient internal control over their financial statements. The old “I wasn’t aware of that” from executives is no longer acceptable and in fact can result in jail time for the executives and others involved. The company can also lose their exchange listing‚ lose of D&O insurance or face large 7+ figure fines. The act was a direct response to corporate scandals‚ such as WorldCom‚ Enron and Tyco who covered up or misrepresented
Premium Auditing Internal control Public Company Accounting Oversight Board
RE: Punishing the Innocent: The Sarbanes-Oxley Act Hunter‚ B. (2007). Punishing the innocent: The Sarbanes-Oxley Act. Retrieved from www.fee.org/files/docLib/0703hunter.pdf ARTICLE SYNOPSIS Hunter’s article examines how the Sarbanes-Oxley Act (SOX Act) is too stringent and gives too much power over companies to governing bodies‚ i.e. the Public Company Accounting Oversight Board (PCAOB) (Hunter‚ 2007). It discusses how the SOX Act is unfair to domestic and foreign and small and large
Premium Public Company Accounting Oversight Board
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington‚ D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31‚ 2008 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 1-2217 20FEB200902055832 (Exact name of Registrant as specified in its charter) DELAWARE 58-0628465 (State or other jurisdiction of
Premium Financial statements Annual report Finance
What is the Sarbanes-Oxley Act of 2002 and what is its purpose? The Sarbanes-Oxley Act of 2002 was designed and passed to protect investors of corporations from the possible acts of fraudulent accounting activities by corporations. The SOX Act’s purpose is to commend and force ethical business practices among businesses across all industries. The overall goal was to protect financial records that organizations keep to help further protect against any and all accounting fraud. Major corporations like
Premium Enron Business ethics