Week 4 discussion aa response

Post responses to two of your classmates. 2-3 sentences  

Allison: The Sarbanes-Oxley (SOX) Act of 2002 is an act that was signed into law on July 30th, 2002 to help protect investors from corporations that are fraudulently reporting their financial records. The SOX Act of 2002 imposed new penalties to those committing fraud and made changed to the already existing security regulations. This act came as a result of three major financial scandals that occurred in the early 2000’s. These three cases invoked publicly traded companies including, Tyco International, WorldCom, and Enron Corporations. These three cases had a direct effect on the trust that investors had in corporations (Kenton, 2022). 

The SOX Act of 2002 came as an addition to the Securities Exchange Act of 1934 and other laws that the Securities and Exchange Commission (SEC) had in place. The SOX Act added four new major principals, including corporate responsibility, increased criminal punishment, accounting regulations, and new protections. Three major parts of the SOX Act are Sec 302, Sec 404, and Sec 802 (Kenton, 2022).

Sec 302 outline that senior corporate officers have to personally sign that the “company’s financials statements comply with SEC disclosure requirements and ‘fairly present in all material respects the financial condition and results of operations of the issuer’ at the time of the financial report” (Kenton, 2022). This shows that the senior corporate officers know what is being reported and are stating that it is accurate and not misleading, and if it is not stating they know they will be charged with criminal penalties that include prison (Kenton, 2022).

Sec 404 outlines that management and audits have to place into effect internal control and reporting methods. Companies have reported that does not have a good impact because it is expensive however the section is there to offer protection to investors (Kenton, 2022).

Sec 802 outlines three major rules that have a direct affect on the record keeping side of a company. They are directly apply to the destruction and falsifying of records, the retention period that records must be kept, and what records business have to store (Kenton, 2022). 

Kenton, W. (2022, May 8). Sarbanes-Oxley Act: What it does to protect investors. Investopedia. Retrieved September 21, 2022, from https://www.investopedia.com/terms/s/sarbanesoxleyact.asp

Brianne:  

The Sarbanes-Oxley Act of 2002 was enacted to help protect the shareholders along with the public from accounting errors and fraudulent transactions in corporations.    

“The Sarbanes-Oxley Act of 2002 will change the processes for creating and adopting auditing, accounting, independence, ethics, and quality standards for CPAs that audit SEC registrants. There is every reason to believe that some of these standards will ultimately apply to audits of non registrants simply because they will be good standards. In addition, the operation of the new Public Company Accounting Oversight Board (PCAOB) will encompass discipline and inspections (peer reviews for auditors of SEC registrants). The Sarbanes-Oxley Act covers many items that will affect accounting principles and auditing standards for years into the future.” (Sarmiento)

Last week in my Forensic Accounting class, I learned that the Sarbanes-Oxley Act of 2022 was created in large part to the Enron scandal. 

http://archives.cpajournal.com/2002/1202/features/f122002.htm

Duepapers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.