Question

What effect do you believe the Sarbanes Oxley Act of 2002 has had on the manufacturing industry in the United States? Please provide examples and figures where necessary to support your answer.

Answer 1

Sarbanes oxly act of 2002 established establishes corporate accountability and criminal penalties for white collar crimes. This act provides regulatory bidies and courts to take various actions civil and criminal proceedings in connection of misstament amounting to accounting scandals and fraudlent financial reports other frauds on securities matters obstrucrion of justice and realting against corporate whistleblowers. The act enforce together civil and criminal penalties for fraud and accounting scandals securities fraud and certain other forms of obstruction of justice. This act effect of manufacturing industries are

1. Creation of public company accounting oversight board

2. A requirement that companies evaluate and disclose the effectiveness of their internal comntrols as they realate to financial reporting and that independent auditors for such companies attest to such disclosures

3. Certification of fianncial reports by chief executive officers and chief fianncial officers

4.Auditor independence including outright bans on certain types of work for audit clients and pre certification by the companys audit committee of all other non audit work

5.ban on most personal loans to any executive officer or director

6. Accelerated reporting of inssider trading

7.prohibhition on insider trades durimg pension fund blackout periods

8.enhanced criminal and civil penalties for violation of securities of law

9. A requierment that companies listed on stock exchanges have fully independent audit commitees taht oversee the relationship between the company and its auditors

10. Employee protections allowing those corporate fraud whistleblowers. And file complaints for back pay and benefits compensatory damages and congressional page abatement orders and reasoanable attorney fees and costs

10.Evaluation and disclosure controls and procedures are

A.staffing inadequacies in the disclosure process

B. The level of experience of those drafting the reports

C.the reliability of the information systems used

D. Whether those preparing the reports have access to those the persons taht have the information required and whether such persons are responsive to request for information

E.whether sufficient time was allowed fir review comments and Qustion and answers on drafts whether transaction files were complete or were missing documents

F.whether material transaction and issue were included in early drafts and how long did it take for issue to surface

G.whether disclosurs were accurate whether form checks revalued any problems and if so whther they were corrected

H.whether there are adequate controls over related party transactions