Sarbanes-Oxley Act of 2002 (SOX) Discussion Board Post

Sarbanes-Oxley Act of 2002 (SOX) Discussion Board Post

Instructions:
Since the enactment of Sarbanes-Oxley, auditors have had civil and criminal liability and are required to take personal responsibility for financial statements. This activity will assist you with understanding your responsibilities and the legal ramifications of not meeting them. This background information will assist you with completing the final project and will provide preparation for a career in auditing.

Critics of the Sarbanes-Oxley Act PDF do not believe the act will be effective at deterring accounting frauds because it primarily relies on specifying new crimes and higher penalties (e.g., increased maximum fines and prison terms). Critics argue that if corporate executives are not deterred by the prospect of 5 or 10 years in prison (which existed pre-Sarbanes-Oxley), the threat of imprisonment will have little or no practical effect no matter what the maximum is raised to. Thus, critics conclude that the act was more an expression of political outrage than good policy.

Proponents of the act believe the new crimes, increased penalties, and the other provisions in the act will be effective at significantly reducing corporate accounting fraud.

For your initial post, provide your opinion concerning the Sarbanes-Oxley Act and support your thoughts with at least one scholarly source in addition to the textbook.

Provide an original and substantive response to the questions posed in your Journal in a minimum of 200 words.

  • You learned about how the Sarbanes-Oxley Act affected the accounting profession and specifically, several major changes in the audits of public companies. These changes helped to improve the transparency and accountability of public company financial statements. Do you think that other types of organizations should have an act similar to the Sarbanes-Oxley Act? Why or why not?
  • Should the government, nonprofits, and private companies be held to the same or similar standards? Or is it too costly and time-consuming?
  • What are your thoughts regarding this type of oversight of other industries in general?

Go to the American Institute of Certified Public Accountants website to read about the Sarbanes-Oxley Act of 2002 (SOX). Also, select Journal of Accountancy to read additional information on SOX. Read about Section 404, compare the requirements of Section 404, and respond to the Discussion topic.

  • What does Section 404 require of management’s internal control report? Research a public company and explain how management reports on internal control in order to meet the requirements of Section 404.

Website for reading/source information http://web.archive.org/web/20200210052131/http://legcounsel.house.gov/Comps/Sarbanes-oxley%20Act%20Of%202002.pdf

Feel free to include additional websites for this Discussion as well. Remember to cite all references used.

To complete this assignment, review the Discussion Rubric PDF document.

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