Sarbanes-Oxley Act

Analytical Essay # 102581

Accounting
Business > Accounting
Business > Law

Sarbanes-Oxley Act

An analysis of the Sarbanes-Oxley Act and its successes.

1,508 words () | 4 sources | APA | 2008 United States

Paper Summary:

The paper analyzes the events leading to the creation of the Sarbanes-Oxley Act of 2002 and outlines the major facets of the Act. The paper reviews the Act to see the major challenges and successes the Sarbanes-Oxley Act has addressed. The paper concludes that despite the Act's drawbacks, it has been able to alleviate or at least deter poor financial reporting that either directly or indirectly had the objective to defraud individuals.

Outline:
Introduction
Preceding the Sarbanes-Oxley Act
Major Provisions of the Act
Will the Act be Successful?
Conclusion

From the Paper:

"The Sarbanes-Oxley Act (henceforth SOX) contains 11 titles, which address issues involving criminal penalties, independence of auditors, rulings and requirements of the Securities and Exchange Commission, among other known accounting elements. The most profound part of SOX is the fact that there is a board that acts as an oversight agency which regulates, inspects, and disciplines auditors in their role as external accountants for public companies."

Sample of Sources Used:

Joyce, E. (2003)."Symbol Fraud Charge Spread: Probe Continues". Business. June 20. Retrieved on March 17, 2007 from http://www.internetnews.com/bus-news/article.php/2225231
Lever, K. (2006), "The conceptual framework: A preparer's view", UK Accounting Standards Board Roundtable Debate, September. Retrieved March 17, 2007 from http://www.frc.org.uk/documents/pagemanager/asb/Presentation%20by%20Ken%20Lever.pdf
Lin, H. (2006). "Limitations of Section 404 of the Sarbanes-Oxley Act". The CPA Journal. March 2006 Issue. Retrieved on March 17, 2007 from http://www.nysscpa.org/cpajournal/2006/306/essentials/p48.htm
Page, M. & Hines, T. (2006), 'Response to FASB/IASB preliminary views on objectives and qualitative characteristics of financial reporting', International Accounting Standards Discussion Papers, November. Retrieved March 17 from http://www.iasb.org/NR/rdonlyres/5AFFE376-B019-4874-9EFC-BA44B700EE3A/0/CL73.pdf