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Assess the requirements of the Sarbanes-Oxley Act related to accounting quality, indicating whether or not you...

Assess the requirements of the Sarbanes-Oxley Act related to accounting quality, indicating whether or not you believe the requirements are sufficient to protect stockholders and potential investors. Provide support for your position.

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ANSWER:

The requirements of the Sarbanes-Oxley Act (SOX) related to accounting quality are:

  • Creation of Public Company Oversight Board for managing, directing, examining and teaching bookkeeping firms in their parts as evaluators of open organizations.
  • A prerequisite that open organizations assess and uncover the viability of their inward controls, as they identify with money related detailing and that free evaluators for such organizations 'validates such exposures.
  • Certification of monetary reports by CEOs and CFOs.
  • Auditor Independence.
  • A necessity that organizations recorded in stock trades have completely free review boards of trustees.
  • Ban on most individual advances to official officer or chief. • Accelerated revealing of insider exchanging.
  • Prohibition on insider exchanges amid annuity finance power outage periods.
  • Additional revelations.
  • Enhanced criminal and common punishments for infringement of securities law.
  • Significantly longer most extreme correctional facility sentences and bigger fines for corporate administrators who purposely and wilfully misquote monetary explanations.
  • Employee insurances permitting that corporate extortion shriek blowers who document grumblings with OSHA inside 90 days.

ekkarill92 answered 1 year ago
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