Sarbanes-Oxley Act of 2002 - IAS Plus.
The Sarbanes-Oxley Act of 2002 is a law the U.S. Congress passed on July 30 of that year to help protect investors from fraudulent financial reporting by corporations. Also known as the SOX Act of 2002 and the Corporate Responsibility Act of 2002, it mandated strict reforms to existing securities.The Sarbanes-Oxley Act is a U.S. law that encourages transparency in financial reporting and corporate governance in public companies with the intention to protect investors and the public against corporate financial fraud and mismanagement.Responding to corporate failures and fraud that resulted in substantial financial losses to institutional and individual investors, Congress passed the Sarbanes Oxley Act in 2002. The Act contains provisions affecting corporate governance, risk management, auditing, and financial reporting of public companies, including provisions intended to.
The Sarbanes-Oxley Act of 2002 (SOX) was passed as the result of the Enron scandal and other instances of accounting fraud. This act was passed to strengthen the role of the Securities and Exchange Commission (SEC).Write a 700- to 1,050-word paper analyzing the manner in which the Sarbanes-Oxley Act of 2002 revitalized the SEC. In the paper include the following: Summarize the Sarbanes-Oxley of 2002 as it relates to U.S. business operations. Explain the governance principles of regulatory compliance requirements related to Sarbanes-Oxley.
The Sarbanes Oxley Act of 2002: a. Was enacted to restore confidence and trust in the financial reporting of companies after a series of financial scandals. b. Removed NIFO as an acceptable inventory cost valuation technique. c. Was repealed and No longer applies. d. Reduced Internal Control requirements in publicly traded companies.
