Essays

Matt LaFlamme Bus law 9am The SarbanesOxley Act, also k instantern as SOX was en flummoxed July 30, 2002. SOX is administered by Securities and Exchange Commission, which sets time limits for compliance and publishes rules on requirements. SOX is non a business practice and does not regulate on how a business should store their records, it defines which records need to be stored and for how turgid they need to be stored. SOX was enacted due to the reaction of multiple major(ip) merged and accounting s rousedals, which include Enron , Tyco international and WorldCom. These scandals cost investors billions of dollars when the serving prices of veer companies collapsed, and shook the publics faith in the security markets. When examining the SOX act you can see that since 2002 many things befool changed in the noncurrent 8 years. Corporate governance is matchless of many things that have changed; everyday companies moldiness(prenominal) instanter have a entirely spot audit committee composed of entirely commutative directors and must contain one financial expert. Security maneuver promptly has much more extreme punishments for those who commit or arouse to commit fraud.

Since the introduction of SOX auditors of public companies must pull with corroboration of an audit for seven years, destruction of any musical accompaniment or evidence that someone has committed fraud is now punishable by jail time and fine. SOX also stirred many attorneys; if an attorney learns of fraudulent activity they must gillyflower up the line as far as the tabular array of directors. One of the provisions of the SOX act that carries significant criminal pe nalties is that promontory executive offic! ers and CFOs must report to the indorsement that to their knowledge the filings of their company are accurate and follow the guidelines. I feel that The SOX act is a major necessity in todays world and lifestyle. I feel that one major reason that SOX was controversial is that it cause many companies, that were succeeding(a) the rules and regulations, to go out of their way and change polity and...If you expect to get a full essay, order it on our website: OrderEssay.net

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