+1-415-670-9189
info@expertsmind.com
Create an argument supporting three items in the act
Course:- Accounting Basics
Length: word count:500
Reference No.:- EM13858786




Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Accounting Basics

Question:

Revamping the Sarbanes-Oxley Act (SOX)" Please respond to the following:

We know that the Sarbanes-Oxley Act was created as the result of several high-profile fraud cases. Now that the act is over 10 years old, many think that it needs to be updated to reflect the changing times.

From the e-Activity, identify and discuss at least three changes that should be made to the act, indicating why these changes are necessary.

Create an argument supporting three items in the act that you would not change

Answered:-

Verified Expert


Preview Container content

The Sarbanes-Oxley Act, better known as SOX, was passed in 2002 by the U.S. government in order to effectively protect the interest of the shareholders and the public at large from accounting errors and fraudulent practices by companies and also aims at improving and careful monitoring of various corporate disclosures. The act is administered by the SEC (Securities & Exchange Commission) which is entrusted with the responsibility of setting deadlines and ensuring proper compliance of publishing requirements for companies

The act came into effect after series of high profile accounting/auditing fraud cases and has been highly effective since its implementation. However, the act is more than 10 years old now and I believe that there should be a few changes in order to ensure its effective continuity. Below are some of the key suggested changes:-

(i) Executive disclosure requirements: The current regulation doesn’t require the company executives to disclose the perks received by them. I feel a more granular reporting requirement would ensure greater transparency and limit the unwanted use of company’s resources for personal benefits.




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Accounting Basics) Materials
On this date the banks prime rate was 11%. The first payment for interst and principle was made on September 1 2011. At december 31 2001, Herman should record accured inster
Assume an activity-based costing system is used and that the number of setups and the number of components are identified as the activity-cost drivers for overhead.
On May 10, J&J Corporation declared the annual cash dividend on its 9,500 shares of preferred stock and a $5 per share dividend for the common shareholders. The dividends wi
Timetech, Inc., has been experimenting with different approaches to improving the performance of its field sales force. In a test involving salespersons in Maine, the compan
Demand for the product that the company should emphasize in part (a) above, up to how much should the company be willing to pay for an additional hour of tapping machine tim
Finally, he has to press the BIG RED BUTTON (which only works when the two components are joined together) in order to cause something horrible to happen. Evil Robot's inter
Calculate the IRR for the following two projects. Which of the two projects is preferable based on the IRR? Under what conditions is it acceptable to use the IRR? Under what
Apple Company sold goods on account for 50,000 (L) pounds on November 2, 2006. On that same date, the controller entered into a forward contract to sell the pounds for $1.59