Question

In: Accounting

write a paper on Sarbanes Oxley,This is a research paper and must include at least two...

write a paper on Sarbanes Oxley,This is a research paper and must include at least two professional resource references in APA or MLA format.

Solutions

Expert Solution

Passed on July 30, 2002 by the US Congress the Sarbanes Oxley act has the objective of protecting the investors from fraudulent accounting practices of corporate entities. The financial disclosures made in the financial statements must be of appropriate standards in order to reflect the true and fair picture of an organization. This act promulgated strict reforms to improve the financial disclosures and their qualities to improve the financial statements. Following number of accounting malpractices that came to the forefront in early 2000s the Sarbanes Oxley Act was created to overhaul the regulatory standards governing the financial statements and financial disclosures of companies (Chhaochharia et. al. 2016). The Act made sweeping changes in the reforms in number of areas that include the following:

  1. Corporate social responsibility.
  2. Reforms to increase criminal punishments.
  3. New accounting regulations.
  4. Protection measures to protect investors from accounting frauds.      

Two most important provisions of the act:

Section 302 of the act made it mandatory for the senior management to certify the accuracy of financial statements and section 404 of the act requires the auditors and senior management to certify about the accuracy of the internal controls of the organization.

The main objective of the Sarbanes Oxley Act is to provide protection to the investors from fraudulent accounting practices of corporations and the act has managed to achieve that successfully since its enactment (Banerjee et. al. 2015).

References:

Chhaochharia, V., Grinstein, Y., Grullon, G. and Michaely, R., 2016. Product market competition and internal governance: Evidence from the Sarbanes–Oxley Act. Management Science, 63(5), pp.1405-1424.

Banerjee, S., Humphery-Jenner, M. and Nanda, V., 2015. Restraining overconfident CEOs through improved governance: Evidence from the Sarbanes-Oxley Act. The Review of Financial Studies, 28(10), pp.2812-2858.


Related Solutions

Name at least two changes brought about by Sarbanes Oxley (SOX) Act of 2002.
Name at least two changes brought about by Sarbanes Oxley (SOX) Act of 2002.
Submit a thread of at least 400 words on the effects of the Sarbanes-Oxley Act of...
Submit a thread of at least 400 words on the effects of the Sarbanes-Oxley Act of 2002 on the auditor and the auditing profession. Your thread should be properly cited, using APA formatting, and should include at least two scholarly sources
describe at least 3 of the criminal penalties under the Sarbanes-Oxley act of 2002
describe at least 3 of the criminal penalties under the Sarbanes-Oxley act of 2002
Why is Sarbanes-Oxley Act enacted? Give three examples of changes in Sarbanes Oxley Act. If a...
Why is Sarbanes-Oxley Act enacted? Give three examples of changes in Sarbanes Oxley Act. If a stock has a beta of 1.50. How do you explain it?
Why was the Sarbanes-Oxley Act enacted? Describe three aspects of the Sarbanes-Oxley Act that are designed...
Why was the Sarbanes-Oxley Act enacted? Describe three aspects of the Sarbanes-Oxley Act that are designed to improve the financial reporting process. What are your thoughts regarding the Sarbanes-Oxley Act?
What is the Sarbanes - Oxley Act and is it important?
What is the Sarbanes - Oxley Act and is it important?
The director of your accounting department has requested that you conduct research on the Sarbanes- Oxley...
The director of your accounting department has requested that you conduct research on the Sarbanes- Oxley Act of 2002 (SOX). Discuss what effects SOX has had on improving corporate governance. Then research, identify, and summarize a specific corporate crime case or issue.    The summary should include a good description of the facts of the case, the issue before the court, and the legal reasoning and decision or outcome (the court’s ruling) of the case, if there is one. Lastly, state...
Give two ways Sarbanes-Oxley affects the CEOs of public companies.
Give two ways Sarbanes-Oxley affects the CEOs of public companies.
Discuss two of the key titles or provisions of the Sarbanes-Oxley Act in terms of the...
Discuss two of the key titles or provisions of the Sarbanes-Oxley Act in terms of the importance of these provisions and their impact on corporate governance and accountability. Does the Sarbanes-Oxley Act go far enough in light of the ongoing repercussions of the 2008 financial crisis? Discuss modifications would you make to this act and your rationale for such legislation.
Write a research paper of at least 1500 words on a topic of yourchoice. You...
Write a research paper of at least 1500 words on a topic of your choice. You can select any topic which might be of interest to you provided that you can find the required resources to list in your paper. Your research paper should include the following sections: Introduction Literature Review Methodology Results and Discussion Conclusion References In your research paper you need to follow the APA documentation style to ensure avoiding plagiarism and the correct use of in-text citation...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT