Sox Act
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Sarbanes-Oxley Act 2002
Sam Alvarado
University of Phoenix
Rachael Lenzmeier Jencks
ACC 561
July 14, 2014
Sarbanes-Oxley Act 2002
In the early 2000’s congress passed the Sarbanes-Oxley Act of 2002, which, requires all corporations to maintain an adequate system of internal control. This act also fines the corporation and holds company officers accountable for any fraud or errors found in the organization. This act has been widely criticized because of the expenses that come with it; however, the effects are positive as more and more investors are willing to invest in a company that is supervised by SOX. Investors feel that SOX safeguards their investment, thereby, providing them with peace of mind, trust, and confidence when investing.
SOX Prevention of Future Fraud
Situations where accountants are going to be tempted into doing something unethical will always exist. The SOX act was placed in effect to help with those issues that have been arising throughout the years. I believe that SOX will be successful in avoiding future company fraud as they are in fear of the consequences. Upper management is now responsible for any unethical misbehavior and will be punished if found guilty. This has brought peace of mind to all users, whether; they are internal users or external users. With the fall of many corporate giants such as Enron there were many who lost everything, from investors to employees and everyone in between. Now all feel that they are protected with the SOX act. We have seen how unethical behavior and greed has been the cause of these problems.
Unethically behavior varies from personal gain to thinking they have everything under control and will not get caught. Some of the situations that lead to unethical practices and behavior are: Financial Pressure when people find themselves in lots of debt and cannot find a way out. Power and position can also be a factor on why people act unethically. People in high places with an organization or...
Sam Alvarado
University of Phoenix
Rachael Lenzmeier Jencks
ACC 561
July 14, 2014
Sarbanes-Oxley Act 2002
In the early 2000’s congress passed the Sarbanes-Oxley Act of 2002, which, requires all corporations to maintain an adequate system of internal control. This act also fines the corporation and holds company officers accountable for any fraud or errors found in the organization. This act has been widely criticized because of the expenses that come with it; however, the effects are positive as more and more investors are willing to invest in a company that is supervised by SOX. Investors feel that SOX safeguards their investment, thereby, providing them with peace of mind, trust, and confidence when investing.
SOX Prevention of Future Fraud
Situations where accountants are going to be tempted into doing something unethical will always exist. The SOX act was placed in effect to help with those issues that have been arising throughout the years. I believe that SOX will be successful in avoiding future company fraud as they are in fear of the consequences. Upper management is now responsible for any unethical misbehavior and will be punished if found guilty. This has brought peace of mind to all users, whether; they are internal users or external users. With the fall of many corporate giants such as Enron there were many who lost everything, from investors to employees and everyone in between. Now all feel that they are protected with the SOX act. We have seen how unethical behavior and greed has been the cause of these problems.
Unethically behavior varies from personal gain to thinking they have everything under control and will not get caught. Some of the situations that lead to unethical practices and behavior are: Financial Pressure when people find themselves in lots of debt and cannot find a way out. Power and position can also be a factor on why people act unethically. People in high places with an organization or...