Sarbanes Oxley Act A Important Part Of Business

A vital part of business today is the Sarbanes-Oxley Act. It was created to protect the integrity of business and the interest of consumers and investors. The Sarbanes-Oxley Act enforces the monitoring of finance data and information technology as it relates to storage of information. It requires the audit of a company’s assets, accounting and finance. The act requires certifications by top company officials’ to guarantee that data submitted is true and accurate. Monitoring to ensure compliance is performed by audits. Falsification of data or non-compliance to the Sarbanes-Oxley Act can results to in penalties of fines and/or imprisonment. The Sarbanes-Oxley Act also known as SOX came into existence in July 2002 and led to key changes to the regulation of corporate governance and financial practice in addition to setting a number of non-negotiable deadlines for compliance. Its purpose is to protect shareholders and the general public from accounting errors and fraudulent practices, as well as improve the accuracy of corporate disclosures. It is named after Senator Paul Sarbanes and Representative Michael Oxley, who were its main originators. The Sarbanes-Oxley Act passed through both houses of Congress on a surge of bipartisan political support. Public shock influenced the political process. Congress was compelled to react assertively to the Enron media fallout, a struggling stock market, and impending re-elections. As a result, the Sarbanes-Oxley Act passed in the SenateShow MoreRelatedSarbanes Oxley1476 Words   |  6 Pagesfirms. Sarbanes Oxley has made many changes to many companies. The major financial scandal s 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 MoreThe Sarbanes Oxley Act Of 20021563 Words   |  7 PagesThe Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, the market becomes fair for investors to have confidence in the integrity of the disclosures and financial reports given to them. The code of ethics includes the promotion of honest and ethical conductRead MoreThe Sarbanes Oxley Act Of 20021614 Words   |  7 PagesThe Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations are put in line to conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, market becomes fair for investors to h ave confidence in the integrity of the disclosures and financial reports given to them. The code of ethics include â€Å"the promotion of honest andRead 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 Scandals And The Implact Of The Sarbanes Oxley Act1472 Words   |  6 PagesA LOOK AT CORPORATE SCANDALS AND THE IMPLACT OF THE SARBANES-OXLEY ACT OF 2002 I. INTRODUCTION An economic boom filled with fraud, collapsed in the early 2000s with the unravelling of Enron in October 2001 followed by the implosion of WorldCom and many others big corporations. The downfall of these major companies led to a wide spread crisis of confidence in the financial markets. A crisis caused by executive greed was able to be magnified when the gatekeepers, the auditors, lawyers and analystsRead MoreEvents Leading Up to the The Sarbanes-Oxley Act Essay examples1203 Words   |  5 PagesThe Sarbanes-Oxley Act was enacted on July 30, 2002. It was enacted by the 107th United States Congress. It is named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. It is also known as the ‘Public Company Accounting Reform and Investor Protection Act’ in the Senate and ‘Corporate and Auditing Accountability and Responsibility Act’ in the House. The main purpose of this act was to protect investors by improving the accuracy and reliability of corporate disclosuresRead MoreSarbanes Oxley Act1322 Words   |  6 PagesSarbanes-Oxley Act The Sarbanes-Oxley is a U.S. federal law that has generated much controversy, and involved the response to the financial scandals of some large corporations such as Enron, Tyco International, WorldCom and Peregrine Systems. These scandals brought down the public confidence in auditing and accounting firms. The law is named after Senator Paul Sarbanes Democratic Party and GOP Congressman Michael G. Oxley. It was passed by large majorities in both Congress and the Senate and coversRead MoreCareer Research : Quality Engineer1339 Words   |  6 Pageshas a complicated history. The auditing history has always changed throughout history (â€Å"History of Auditing†). Auditing changed so much because it had to meet the needs of the business environments of that day. Auditing has been around since the beginning of time, starting out as just a system to catch fraud. As the business world and the United States grew, auditing took up more roles in the environment to keep up with the chan ging times. In between the 1800’s and the 1900’s people started to beRead MoreSarbanes-Oxley Paper723 Words   |  3 PagesSarbanes Oxley Paper The Sarbanes-Oxley (SOX) act was passed into law in 2002. It was created in response to major financial scandals that largely shook the publics confidence in corporate accounting practices. It was a significant response to improper record handling techniques. Under the law, corporate managers must assess whether they have sufficient safeguards to catch fraud and bookkeeping errors. There are consequences for not complying with the provisions of the act and there are certainlyRead MoreSarbanes Oxley Act And Its Effect On Market Liquidity1289 Words   |  6 PagesMarket liquidity proves to be important to both investors and sellers worldwide. Liquidity refers to the relationship between the speed of the sale, and the price of the sale. Liquid markets have buyer ask prices relatively similar to seller ask prices, making this a preferable situation for both the investor and the seller (Abella, 2016). The Sarbanes Oxley Act in 2002 incentivized institutions to keep more accurate an d attainable records of business. The Act being based off of the fraudulent activity