Skip to document
Welcome to StudocuSign in to access the best study resources
Guest user
0followers
HomeMy LibraryAsk AI
  • You don't have any recent items yet.
My Library
  • You don't have any courses yet.
  • You don't have any books yet.
  • You don't have any Studylists yet.

Lecture Documents Accounting - Sarbanes- Oxley ACT (SOC)

Lecture Documents Accounting - Sarbanes- Oxley ACT (SOC)
Course

Intro To Accounting (AC 210)

316 Documents
Students shared 316 documents in this course
Academic year: 2022/2023
Uploaded by:
Anonymous Student
This document has been uploaded by a student, just like you, who decided to remain anonymous.
University of Alabama

Recommended for you

Comments

Please sign in or register to post comments.

Students also viewed

Related documents

Preview text

SARBANES-OXLEY ACT (SOC)

It was the largest reform in the United States and the world since the Securities Acts of 1933 and 1934. The bill was introduced by Senator Paul Sarbanes (Maryland) and Representative Michael Oxley (Ohio). This law was issued as a response from the United States Congress to various scandals in several large corporations such as Enron and then followed by WorIdCom, Qwest, Tyco, HeaIthSouth and others, which also involved several public accounting firms (KAP) included in the Big Five "The big five" such as Arthur Andersen, PWC, and KPMG. All these scandals are tragic and sad examples of how fraud schemes have a devastating impact on shareholders, Markets, employees and society in the broadest sense. With the enactment of the Sarbanes Oxley Act 2002 signed by President George Walker Bush on July 30, 2002 is expected to bring a positive impact for a variety of professions, including: Certified Public Accountants (CPA); public accounting firm (KAP); companies that trade their shares (listed on the US stock exchange) (including directors, commissioners, employees, and shareholders); brokers (brokers); dealers (dealers); lawyers who practice for public companies; banking investors and financial analysts. The adoption of the law in the background by the bankruptcy of a number of corporations in the United States. In this paper will discuss about: what is regulated in the SOA and how sanctions will be imposed if the rules in the SOA are violated. The government regulates companies through various means, both through the establishment of laws and various other implementing regulations. The

government regulates with the aim that there is healthy competition among business actors. In addition, it is also to align the power imbalance between business actors, individual consumers, and society in general. Society, both in the sense of individuals and groups, needs an institution that regulates and protects their interests, especially public goods/services. The purpose of the TER setting is related to five (5) things as follows : 1. Regulating competition; 2. Protecting consumers; 3. Promote equity and safety; 4. Protecting the environment; 5. Ethics to deter and provide for enforcement against misconduct. Due to public pressure, Congress was quick to act. On July 30, 2002, President Bush passed the Sarbanes- Oxley Act of 2002. The law intends to increase public confidence in the capital market and establishes severe liability and penalties for public companies and their executives, directors, auditors, lawyers and stock analysts who violate the established rules. It was the largest reform of corporate governance since the Securities Acts of 1933 and 1934. It is therefore a must for accountants, auditors and fraud examiners to study this law, and includes also Statement on Auditing Standards (SAS) No. 99, in order to determine its effect on public, private or other types of organizations and what responsibilities are its obligations. Summary of the Sarbanes-Oxley Act: a. Establish an independent public company board to oversee audits of public companies; b. Require one member of the audit committee is an expert in the field of Finance; c. Require full disclosure to shareholders regarding complex financial transactions; d. Requires the company's Chief Executive Officer (CEO) and Chief Financial Officer (CFO) to certify the validity of the company's financial statements. If they are found to have made a

Was this document helpful?

Lecture Documents Accounting - Sarbanes- Oxley ACT (SOC)

Course: Intro To Accounting (AC 210)

316 Documents
Students shared 316 documents in this course

University: University of Alabama

Was this document helpful?
SARBANES-OXLEY ACT (SOC)
It was the largest reform in the United States and the world since the Securities
Acts of 1933 and 1934. The bill was introduced by Senator Paul Sarbanes
(Maryland) and Representative Michael Oxley (Ohio). This law was issued as a
response from the United States Congress to various scandals in several large
corporations such as Enron and then followed by WorIdCom, Qwest, Tyco,
HeaIthSouth and others, which also involved several public accounting firms
(KAP) included in the Big Five "The big five" such as Arthur Andersen, PWC,
and KPMG. All these scandals are tragic and sad examples of how fraud schemes
have a devastating impact on shareholders, Markets, employees and society in the
broadest sense. With the enactment of the Sarbanes Oxley Act 2002 signed by
President George Walker Bush on July 30, 2002 is expected to bring a positive
impact for a variety of professions, including: Certified Public Accountants
(CPA); public accounting firm (KAP); companies that trade their shares (listed on
the US stock exchange) (including directors, commissioners, employees, and
shareholders); brokers (brokers); dealers (dealers); lawyers who practice for
public companies; banking investors and financial analysts. The adoption of the
law in the background by the bankruptcy of a number of corporations in the
United States. In this paper will discuss about: what is regulated in the SOA and
how sanctions will be imposed if the rules in the SOA are violated. The
government regulates companies through various means, both through the
establishment of laws and various other implementing regulations. The

Students also viewed

Related documents