All papers examples
Get a Free E-Book!
Log in
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

Voting as a Civic Responsibility, Essay Example

Voting is a process whereby individuals, such as an electorate or gathering, come together to make a choice or convey an opinion, typically after debates, [...]

Pages: 1

Words: 287

Essay

Utilitarianism and Its Applications, Essay Example

Maxim: Whenever I choose between two options, regardless of the consequences, I always choose the option that gives me the most pleasure. Universal Law: Whenever [...]

Pages: 1

Words: 356

Essay

The Age-Related Changes of the Older Person, Essay Example

Compare and contrast the age-related changes of the older person you interviewed and assessed with those identified in this week’s reading assignment. John’s age-related changes [...]

Pages: 2

Words: 448

Essay

The Problems ESOL Teachers Face, Essay Example

Overview The current learning and teaching era stresses globalization; thus, elementary educators must adopt and incorporate multiculturalism and diversity in their learning plans. It is [...]

Pages: 8

Words: 2293

Essay

Should English Be the Primary Language? Essay Example

Research Question: Should English be the Primary Language of Instruction in Schools Worldwide? Work Thesis: English should be adopted as the primary language of instruction [...]

Pages: 4

Words: 999

Essay

The Term “Social Construction of Reality”, Essay Example

The film explores the idea that the reality we experience is not solely determined by objective facts but is also shaped by the social and [...]

Pages: 1

Words: 371

Essay

Voting as a Civic Responsibility, Essay Example

Voting is a process whereby individuals, such as an electorate or gathering, come together to make a choice or convey an opinion, typically after debates, [...]

Pages: 1

Words: 287

Essay

Utilitarianism and Its Applications, Essay Example

Maxim: Whenever I choose between two options, regardless of the consequences, I always choose the option that gives me the most pleasure. Universal Law: Whenever [...]

Pages: 1

Words: 356

Essay

The Age-Related Changes of the Older Person, Essay Example

Compare and contrast the age-related changes of the older person you interviewed and assessed with those identified in this week’s reading assignment. John’s age-related changes [...]

Pages: 2

Words: 448

Essay

The Problems ESOL Teachers Face, Essay Example

Overview The current learning and teaching era stresses globalization; thus, elementary educators must adopt and incorporate multiculturalism and diversity in their learning plans. It is [...]

Pages: 8

Words: 2293

Essay

Should English Be the Primary Language? Essay Example

Research Question: Should English be the Primary Language of Instruction in Schools Worldwide? Work Thesis: English should be adopted as the primary language of instruction [...]

Pages: 4

Words: 999

Essay

The Term “Social Construction of Reality”, Essay Example

The film explores the idea that the reality we experience is not solely determined by objective facts but is also shaped by the social and [...]

Pages: 1

Words: 371

Essay