Essays on Sarbanes Oxley Act

It was a few years back that the United States market capital saw the domination of financial fraud revelations performed in so called big Companies of the economy. The stakeholders of the Companies like investors, affiliates in the market, and communities had to incur huge historic losses. The top notch corporate leaders were also the ones affected. The corporate veil was lifted in most cases and many of them had to suffer jail term. Industries were affected in the sense that many big names in the industry, including the biggest American audit firm were desperately out of business. The ...

Abstract

This paper presents the ideal purpose of adopting a unitary global set of accounting standards to be applied across the globe. It presents the major characteristics of both the dominant accounting standards used worldwide, the IFRS and the US GAAP. It examines whether the IFRS or US GAAP works best for the present and the future needs of a global finance system. The various differences of these two accounting standards were shown. The major applications of the IFRS as the leading accounting standards and principles were also highlighted in the paper. It also provided various guidelines in this seemingly ...

Social Responsibility: The case of Bank of America’s Expansion

Introduction

With the emergence of the global world, businesses the world over have been compelled to offer competitive services. In the same strain, the protectionist systems adopted by countries have since been replaced by open market concepts that necessarily encourage capital flight and cross border investments. In addition, it has become easier for businesses to engage in capital borrowing at the international level. It is on this premise that this paper seeks to recommend for the Bank of America’s expansion into the international financial arena and more specifically to the BRICS nations which have been confirmed as having colossal ...

According to the Federal Trade Commission, the test for unfairness assumes a tripartite approach. Three critical aspects are considered in analysis whether a practise is unfair or not. The paper shall briefly examine the three steps of analysis. Foremost, the substance of the injury is examined. The injury must be substantial in a way as to cause economic, social safety and or a health damage. According to this test, the harm occasioned by the conduct of the market player needs to be substantial enough to occasion an injury to the consumers and that injury must to be against public policy. Secondly, the test ...

Summary and evaluation of articles

The Sarbanes Oxley Act was intended to create sanity in management of corporations in the U.S. Ten years down the line, the Act has been appreciated for its successful approach in creating a state of accountability in the management of companies. Today, the citizenry and investor organizations trust corporate governance reports and statements. According to authors of the Sarbanes Oxley Act implications, changes have been witnessed in the management and the degree of independence of both auditors and the board of directors. These changes are expected to occasion a consequential improvement in the way corporations are led. In addition, the financial ...

Sarbanes Oxley Legislation

Sarbanes Oxley Legislation The impact of Sarbanes Oxley Act in the financial markets of the United States of America is playing an important role in the progress of financial growth of the overall economy. The Sarbanes Oxley Act was introduced in the year 2002 and the main reason of the Sarbanes Oxley Act was to implement the corporate governance codes and ethical standards for the listed and the non listed companies all over the United States of America. The main reason behind the Sarbanes Oxley Act is that the government of the United States of America wants to ...

Introduction

Inevitably, the existence of sustainability and efficacy depends upon numerous things in particular, and it is essential to stay in the same jurisdiction for a long span of time. There are certain aspects that deem significant from the viewpoint of companies and industries. Hundreds of thousands of companies are currently working in the world, and it is essential for these companies to comply with a legal requirement and operational laws in particular; otherwise it would become extremely difficult for them to stay in the business for a long span of time. There are certain regulations that are important for an organization to opt ...

Introduction

Sarbanes Oxley Act, commonly known as SOX, has come into being in 2002 and its compliance is mandatory for reporting of financial information by firms. The aim of this paper is to discuss Sarbanes Oxley Act of 2002, the reason of its creation and how it prevents inappropriate behaviour in financial reporting. The paper has three sections. The first section discusses what Sarbanes Oxley Act, 2002 is and the need for the creation of such an act. The second section re-establishes the role of Sarbanes Oxley Act (2002) in the prevention of fraudulent financial reporting. The third section concludes ...

Analysis of the Collapse of Enron

Introduction Every business venture can be characterized by a series of ups and downs. A startup business, for example, may initially face a lot of problems, big problems at that, perhaps to make both ends meet. After the initial stages, the business may enter a period of stability. And that is where the cycle of ups and downs often begins. Enron, a business that started in the 1980s as a securer of oil and natural gas pipelines in the United States, is not an exemption. Its business life cycle may well be characterized by a series of ups and downs too. Enron’s earliest ...

LJB Company needs to be cognizant of the Sarbanes Oxley Act provisions which demand for the application of corporate ethics even in the area of internal controls. For that reason, before the company goes public, it must take note of the demands by the Securities and Exchanges Commission in respect of public companies. Additionally, the policies and operating framework of the company must conform to the standards set out by the Sarbanes Oxley Act which in summary demand for sufficient internal controls to be implemented by public entities. Some of the new internal controls that the company would ...

Introduction and Background

The go green debate is gaining currency in the business world. It is no longer the preserve of governments to regulate the market for purposes of sustainability. With the emergence of environmental awareness, business units have been roped forcefully into the go green bandwagon. Closely intertwined with the go green course, is ethical consciousness in which organizations, employers and employees are required to make informed and ethically conscious decisions. In the United States of America, after the Enron Scandal, the ethical course has taken a statutory footing with the enacted of the Sarbanes Oxley Act. It is on that premise ...

Accounting is an organized process of determining, recording, analyzing as well as interpreting and communicating all the information related to finance for the purpose of appropriate economic decision making. Without regulation of public accounting process, firms will deliver financial statements that are inclined to their own interest hurting the economy. When talking about the accounting industry and the government, it simply means the public accounting and its regulation by the government as enterprises render their financial information to the public. Accounting provides services such as book keeping and auditing which are required by different stakeholders for execution of economic ...

The Sarbanes Oxley Act is a federal law that introduced new and strengthened standards and regulations for public companies in the United States of America in the wake of poor corporate governance and accountability. The act has benefited corporations through the introduction of strict disclosure requirements, enhanced financial reporting controls and increased external auditor’s independence and strengthened the board independence. All these requirements have collectively boosted the confidence of the American public on corporations and the financial markets at large. The provisions have created a state of accountability and transparency making information reaching the investors reliable. This is as opposed ...

Introduction

Enron scandal which took place in 2001 had become known all over the world for its unprecedented span. In accordance with BBC (2002) top management of the company was incriminated in concealment of the actual financial situation, namely: providing its stakeholders with irrelevant information about profits and debts of the company. The current paper is to investigate causes and consequences of Enron scandal and discuss the Sarbanes Oxley Act of 2002 (SOX) points with respect to this case.

1. Brief Outline of Enron Crisis

Enron scandal had far-reaching financial and political implications which influenced economical and political life of the United States and the ...