Sox Act Review
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- Date Submitted: 02/02/2015 02:49 PM
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University of Phoenix Material
Article Review Format Guide
MEMORANDUM
UNIVERSITY OF PHOENIX
DATE:
TO:
FROM:
RE: Bumgardener, L. (n.d.). Retrieved from http://gbr.pepperdine.edu/2010/08/reforming-corporate- america/
ARTICLE SYNOPSIS
Thee article in which I chose to review deals with how the Sarbanes-Oxley Act was formed and the impact it created on businesses. The Sarbanes-Oxley Act is named after U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH) who sponsored it this act jointly. The intent of the Sarbanes-Oxley Act was to ensure top management certified the accuracy of financial information in their companies. The need for this act came about after the financial market crash in 1929. In the aftermath of the crash, Congress began looking into corporate fraud in the 1930’s. By doing so, the Securities Act of 1933 was formed and passed through Congress. This law was viewed insufficient and just one year later, Congress passed the Securities Exchange Act of 1934. This act was viewed to be better than the first, but would not be a permanent solution. After corporations fell back into the same routines, sweeping changes needed to be made. So, in 2002 the Sarbanes-Oxley Act was passed to help get a handle on new corporate fraud.
LEGAL ISSUE
The Sarbanes Oxley Act of 2002 (SOX) created a major shift in the regulatory environment of publically traded companies. The U.S. Congress passed the law in an effort to reduce the probability of future fraud from occurring, such as the Enron and Tyco International fiascos. The law requires more comprehensive financial reporting requirements and enforces stricter penalties on those not in compliance. However, there are many opponents to the law who believe the regulations are unnecessary and too costly for most companies.
MANAGERIAL PERSPECTIVE
Transparent business practices are put in place to help prevent companies from...
Article Review Format Guide
MEMORANDUM
UNIVERSITY OF PHOENIX
DATE:
TO:
FROM:
RE: Bumgardener, L. (n.d.). Retrieved from http://gbr.pepperdine.edu/2010/08/reforming-corporate- america/
ARTICLE SYNOPSIS
Thee article in which I chose to review deals with how the Sarbanes-Oxley Act was formed and the impact it created on businesses. The Sarbanes-Oxley Act is named after U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH) who sponsored it this act jointly. The intent of the Sarbanes-Oxley Act was to ensure top management certified the accuracy of financial information in their companies. The need for this act came about after the financial market crash in 1929. In the aftermath of the crash, Congress began looking into corporate fraud in the 1930’s. By doing so, the Securities Act of 1933 was formed and passed through Congress. This law was viewed insufficient and just one year later, Congress passed the Securities Exchange Act of 1934. This act was viewed to be better than the first, but would not be a permanent solution. After corporations fell back into the same routines, sweeping changes needed to be made. So, in 2002 the Sarbanes-Oxley Act was passed to help get a handle on new corporate fraud.
LEGAL ISSUE
The Sarbanes Oxley Act of 2002 (SOX) created a major shift in the regulatory environment of publically traded companies. The U.S. Congress passed the law in an effort to reduce the probability of future fraud from occurring, such as the Enron and Tyco International fiascos. The law requires more comprehensive financial reporting requirements and enforces stricter penalties on those not in compliance. However, there are many opponents to the law who believe the regulations are unnecessary and too costly for most companies.
MANAGERIAL PERSPECTIVE
Transparent business practices are put in place to help prevent companies from...