The Sarbanes-Oxley Act of 2002

The Sarbanes-Oxley Act of 2002 Jayne Diaz BUS 591: Financial Accounting & Analysis Professor Susan Ayers bunt 26, 2012  The Sarbanes-Oxley Act of 2002 Prior to 2002, there was very little precaution of accounting procedures. Auditors were not always independent and corporate political sympathies procedures and disclosure provisions were inadequate. Sometimes, executive compensation was tied to the parentage of the company which created an incentive to manipulate the stock price by using fraudulent accounting practices to make it look identical companies were making more money than they actually were. The Sarbanes-Oxley Act of 2002 was introduced because of the kick in of several major corporations due to these practices. This paper entrust treat the main objective of The Sarbanes-Oxley Act of 2002, and point out linchpin components to the act. It will also go through a some of the different criticisms from various individuals that have surrounded SOX since it was enacted. The paper will also talk about the positive and negative sparing consequences of the act. Lastly, there will be a discussion on whether or not SOX has succeeded in achieving its goals and has become successful in the past decade.

Main Objectives The Sarbanes-Oxley Act of 2002, also known as the Public Company Accounting Reform and Investor Protection Act, was a bill written: To improve quality and transparency in financial reporting and independent audits and accounting services for state-supported companies, to create a Public Company Accounting supervising Board, to enhance the standard setting process for accounting practices, to prove the independence of firms that audit public companies, to increase corporate indebtedness and the usefulness of corporate financial disclosure, to protect the objectivity and independence of securities analysts, to improve Securities and Exchange Commission resources and oversight, and for other purposes (Sarbanes et al., 2002, p. 1-2). Prior to the act,... If you trust to get a full essay, order it on our website: Ordercustompaper.com

If you want to get a full essay, wisit our page: write my paper