Sarbanes-Oxley

Paper Summary:

The paper states that Sarbanes-Oxley (SOX) requires a minimum of introduction, as it is a complex set of regulations that were designed and enacted by the US federal government in 2002, in response to a large scale corporate business scandal that occurred in previous years. The paper notes that the statute amends the complex US securities laws, many of which have to do with accountability and some of which will affect taxation of both corporations. The paper continues at length by discussing the principles that ensured that Sarbanes-Oxley introduced a system that leaves fewer honest people in a position to be unwitting conspirators in scandalous financial practices, as well as drives dishonest people in accountancy out of business and thus helps put an end to unscrupulous financial practices.

Outline:
Introduction
Sarbanes-Oxley
Scope
Accountability
Corporate Taxation
Open Audits
Public Accounting
Public Taxation
Individual Taxation
Loss of Tax Free Benefits
Stock Packages
Split benefits
Conclusion
On a Positive Note

From the Paper:

"The manner in which Serbanes-Oxley alters the individual arena of taxation is also significant, as many forms of non-cash employee compensation have changed, not the least of which is the traditional allowance of corporations to offer employees tax free compensation, in protected accounts or as premiums on insurance policies, which creates an interesting shift and additional controversy."

Sample of Sources Used:

• Alexander, N., & Brody, L. (2003). Split-Dollar Redux: CPAs May Find the Benefits a Thing of the Past. Journal of Accountancy, 195(6), 95.
• Carpenter, T. D., Fennema, M., Fretwell, P. Z., & Hillison, W. (2004). A Changing Corporate Culture: How Companies Are Adjusting to Sarbanes-Oxley. Journal of Accountancy, 197(3), 57.
• Chambers, V., & Crowley, P. (2003). Capitalism and Accounting Reform. SAM Advanced Management Journal, 68(3), 44.
• Dennis, A. (2004). Small Firms: Think Big! More Work at Large Firms Means More Opportunity for Smaller Ones. Journal of Accountancy, 197(6), 22.
• Dennis, A. (2004). What's Next in Corporate Pay Practices? an Enhanced Role for Compensation Committees and a Hard Look at Stock Options Are in the Offing. Journal of Accountancy, 198(1), 59.

More papers on Sarbanes-Oxley:

• Analytical Essay # 85468 : "Sarbanes-Oxley Act"
• Essay # 83873 : "The Sarbanes-Oxley Act"
• Essay # 72995 : "Sarbanes-Oxley Act's Costly Side"
• Analytical Essay # 71838 : "The Sarbanes-Oxley Act"

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