Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Sarbanes-Oxley Act, Essay Example

Pages: 1

Words: 321

Essay

Sarbanes-Oxley Act (SOX) establishes new law or changes existing law in many ways. It dramatically changes the responsibilities of individuals involved in companies whose stock is publicly traded. It increases the responsibilities of the CEO, the CFO, directors, inside and outside legal counsel to the firm, and the firm’s outside auditor. Notably, a firm’s CEO and CFO must each “certify the accuracy” of everyquarter or yearlyfiling with the Securities and Exchange Commission (SEC). Adding to the stakes for the certifying CEO and CFO, the Act imposes criminal penalties of up to 10 years for a “knowing” violation and up to 20 years for a “willful violation” – see §906 of the Act(Lander, 2003, p. 8).

The auditors must contract with the audit committee of the board, not with management of the company. And they may no longer to do other jobs for the firm, such as book-keeping, and financial record-keeping– see §201 of the Act (Lander, 2003, p. 103). Each member of the committee must be different. This requirement of independence means that (a) no employees of the company or its subsidiaries may be a member; and (b) members may not get any “consulting, advisory, or other compensatory fees” from the company, other than fees belonged to the board or to the committee (so that an audit committee member may not, say, serve as a consultant or lawyer to the company) (Sullivan, 2006).

Corporate whistle-blowers – employees who report, say, the company’s financial crime to government authorities – get exceptional protection. It is now a crime punishable by up to 10 years in prison for anyone to knowingly retaliate against a person for supplying accurate information about a federal crime to a law-enforcement officer – see § 806 of the Act (Lander, 2003, p. 97). So firing a whistle-blower in retaliation is a felony.

References

Lander, Guy P. (2003). What is Sarbanes-Oxley. McGraw-Hill Professional.

Sullivan, Kristin. (2006). Corporate Accounting Scandals, Connecticut General Assembly. Retrieved from http://www.cga.ct.gov/2006/rpt/2006-R-0122.htm

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

Essential II of DNP, Essay Example

The American Association of Colleges recommends that the Doctor of Nursing Practice (DNP) is a terminal nursing degree that focuses on practice(American Association of Colleges [...]

Pages: 2

Words: 500

Essay

Improving Healthcare in Obstetrics, Essay Example

The role of obstetrics revolves around reproduction, birth, aging as well as death which are crucial passages in the life of people. They therefore have [...]

Pages: 1

Words: 331

Essay

Strategies That Promote Effective Healthcare Advocacy, Essay Example

The role of obstetrics revolves around reproduction, birth, aging as well as death which are crucial passages in the life of people. They therefore have [...]

Pages: 1

Words: 331

Essay

Effective Strategies of Coalition Building in Obstetrics, Essay Example

Community coalitions are also termed as the collaborative partnerships, the community forums, the task forces as well as the interagency coordinating councils. They are effective [...]

Pages: 1

Words: 332

Essay

Nabokov’s “Signs and Symbols”, Essay Example

Freud and Nietzsche bear an immediate affinity, in so far as the respective thinkers both oppose the notion of a unified human subject. The narratives [...]

Pages: 3

Words: 947

Essay

Stamp Act and Declaratory Act, Essay Example

Although several arguments made by the colonists to British Parliament were articulated against the passage of the Stamp Act, the punitive law was passed and scheduled [...]

Pages: 4

Words: 1109

Essay

Essential II of DNP, Essay Example

The American Association of Colleges recommends that the Doctor of Nursing Practice (DNP) is a terminal nursing degree that focuses on practice(American Association of Colleges [...]

Pages: 2

Words: 500

Essay

Improving Healthcare in Obstetrics, Essay Example

The role of obstetrics revolves around reproduction, birth, aging as well as death which are crucial passages in the life of people. They therefore have [...]

Pages: 1

Words: 331

Essay

Strategies That Promote Effective Healthcare Advocacy, Essay Example

The role of obstetrics revolves around reproduction, birth, aging as well as death which are crucial passages in the life of people. They therefore have [...]

Pages: 1

Words: 331

Essay

Effective Strategies of Coalition Building in Obstetrics, Essay Example

Community coalitions are also termed as the collaborative partnerships, the community forums, the task forces as well as the interagency coordinating councils. They are effective [...]

Pages: 1

Words: 332

Essay

Nabokov’s “Signs and Symbols”, Essay Example

Freud and Nietzsche bear an immediate affinity, in so far as the respective thinkers both oppose the notion of a unified human subject. The narratives [...]

Pages: 3

Words: 947

Essay

Stamp Act and Declaratory Act, Essay Example

Although several arguments made by the colonists to British Parliament were articulated against the passage of the Stamp Act, the punitive law was passed and scheduled [...]

Pages: 4

Words: 1109

Essay

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!