ipl-logo

Pros And Cons Of Sarbanes-Oxley Act Of 2002

495 Words2 Pages

Sarbanes-Oxley Act of 2002 is a law enacted by US congress in July 30, 2002. The bill consists of 11 sections and was created as a reaction to high numbers of fraud and business misbehavior in major US corporations. The act clearly imposes responsibilities for the board of directors and defines the regulations all corporations have to comply with. The bill does not affect only US public companies, but it goes beyond that to over control companies under a US presence. It requires each organization to provide financial reports to SOX administration to evaluate the data and assure the company comply with the law or otherwise it will be under criminal or civil penalties. Upon establishment of the law, criticism has grown among most companies and corporations. One of the main issues from a corporate perspective was the act generally established without the consideration of the company’s size and profits, which greatly affects small businesses and reduce their future progress and enhancements. Another major issue was the cost to comply with the law. Most small business has reported over $500,000.00 per year to cover their auditing and other resources costs in order to ollow the act …show more content…

It intensifies the need of internal control to ensure all financial transactions were preformed the way they were supposed to and to avoid any errors in the company’s balance book. Internal controls are required to be tested quarterly by management to evaluate their effectively. Another benefit of SOX is it reveals critical information to shareholders that help them making better investment decisions and increase their confidence and protection which then lead to more cash flowing into the market. The act also provides specific steps for CEOs and managers to follow while performing their jobs, these steps and procedures will protect these individuals from making wrong decisions and make them less accountable and vulnerable to

Show More
Related
215 Words | 1 Pages

The Bipartisan Reform act of 2002, which is also known as McCain Feingold Act is a United States federal law that changed the Federal Election Campaign Act of 1971, and adjusted the financing of political campaigns. It included many arrangements to end the use of “soft money”, which is a contribution to a political party that is not assumed as going to a specific candidate, and ignores many legal limitations. It banned national parties from raising or spending non federal funds, limited fundraising by federal and non-federal candidates and officeholders on behalf of party committees, other candidates, and non profit organizations. The act was proposed by John McCain and Rusell Feingold. They were both senators that kept promoting the passing

Read More
1572 Words | 7 Pages

On January 29th, 2009 President Obama signed his first bill, the Lilly Ledbetter Fair Pay Act. Recognition to pass the bill began when Lilly Ledbetter received an anonymous letter stating the male managers and their surprisingly larger salaries. Ledbetter decided to take Goodyear Tire & Rubber Co. to court, however, the judge ruled in favor of Goodyear Tire & Rubber Co., which then lead to the Lilly Ledbetter Fair Pay Act. The act states that as long as workers file their charges within 180 days (or 300 days in some jurisdictions) from the time they received any discriminatory paycheck, they are able to file a claim (Committee On Education & The Workforce Democrats). Although the act is better than the Equal Pay Act of 1963, which only allowed 180 days from the first discriminatory paycheck to file a claim, there are still problems with the act.

Read More
318 Words | 2 Pages

The act established that companies could not use treasury money to support or dissent someone’s political campaign, and the case decided whether are not this law was against the first and fourteenth amendment . The outcome of the case decided that this law was in fact not against the first or fourteenth amendment because companies could not be regarding as people and therefore did not reserve the same kinds of rights and liberties, such as freedom of speech or equal protection under the law . In the case of McConnell v. Federal Election Committee, the BCRA of 2002 was brought into question and whether or not Congress had the right to limit companies spending of money towards political campaigns, even if it was considered to be soft money and

Read More
218 Words | 1 Pages

The Unites States is by far in a better position since the passage of the Homeland Security Bill of 2003. This bill has strengthened and fortified our borders to ensure we are never attacked again like were on September 11, 2001. “There have been a number of planned attacks that have been prevented on U.S. soil and abroad within the past several years” because of the Homeland Security Bill that was put into place (Keefer, 2017). This act vetted a lot of agencies and brought them together in order to make our country much safer than it ever has been. The combing of 22 federal agencies into one new cabinet level department as well as creating four new divisions was the biggest federal reorganization since the creation of the Department of

Read More
174 Words | 1 Pages

The affordable care act is a United States statue signed into law by President Obama in March of 2010. It represents the most significant improvement to the U.S. healthcare system since 1965 with the addition of Medicare and Medicaid. Also known and commonly referred to as Obamacare, it was enacted to increase the affordability and quality of health insurance, diminish the rate of the uninsured by expanding public and private insurance coverage while reducing the cost of healthcare for individuals and the government. This law will require Hospitals and doctors to reconstruct financial practices along side with technologically and clinically to advance better outcomes, reduce cost and improve methods of accessibility.

Read More
269 Words | 2 Pages

The Affordable Care Act was a health care act that was established by the federal government to expand and improves access to care and curb spending through regulations and taxes. Each state could decide to participate or not. The act was adopted as law by US Fisher02 President Barrack Obama in March 2010. The goal of this act was to reform the current health care in the United States.

Read More
282 Words | 2 Pages

The National Labor Relations Act allows employees to form a union or join a preexisting union. The same act prevents employers from standing in the way of workers attempting to unionize. Many organizations frown on unionization, but regardless of their opinion, they cannot interfere with employment rights. Employers are violating the law if they threaten employee 's jobs, question union activities, or eliminate benefits for employees by unionization. They also cannot offer benefits or perks to employees for refusing to unionize, as this could be seen as illegal persuasion (Employer/Union Rights, n.d.).

Read More
820 Words | 4 Pages

As a student of economics, I believe that the repeal of the Glass-Steagall Act via the Gramm-Leach-Bliley Act was not a primary reason behind the Global Financial Crisis 2008; however it did however worsen the situation. The Glass Steagall Act The Glass Steagall Act was initially signed into law in 1933 after the famous stock market crash of 1929. Commercial banks had invested heavily in the stock market and after the crash, a hefty part of the population lost their savings.

Read More
688 Words | 3 Pages

An emergency legislative action that was taken to offset some of the detrimental economic factors during the Great Depression in 1933 as a result of the failure of around five thousand banks. The act was signed into law on June 16, 1933 by President Roosevelt. The two main purposes behind the legislation were to first, stop the run on banks and re-build confidence in people about the banking system again; and two, to demolish the link between investment and commercial banking, a factor that was largely thought to have contributed to the 1929 market crash. Therefore, the Glass-Steagall Act separated the two, commercial and investment banking and also prohibited these commercial banks from participating in any sort of investment business activities as well as stiffened the regulations on national banks overall.

Read More
1164 Words | 5 Pages

Protiviti is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit. Through their network of more than 70 offices in over 20 countries, they have served more than 40 percent of FORTUNE 1000® and FORTUNE Global 500® companies. They also work with smaller, growing companies, including those looking to go public, as well as with government agencies. Protiviti is a wholly owned subsidiary of Robert Half. Founded in 1948, Robert Half is a member of the S&P 500 index.

Read More
504 Words | 3 Pages

Far too long in this great country of ours have the big corporations taken advantage of the people at the bottom. Unfortunately, because of our laissez-faire oriented feelings this leaves millions of Americans who need to rely on government programs in order to survive. With this in mind the 28th Amendment will tackle the problem of big corporations head on with as little government intervention as possible. This Amendment will be composed of three parts initially the first two focused completely on the corporations themselves while the last part will deal with the individual so that he/

Read More
1389 Words | 6 Pages

This act indicated the failure of NYSE in its surveillance of its members and in effectively addressing issues that could involve violations. Thus NYSE violated section 19 (g) of the exchange act by failing to enforce section 11 (b) of the exchange act and Rule 11b-1 and various other NYSE rules including rule 92 and 104.10. Prior to this failure, in 1999 SEC ordered NYSE to comply with a series of undertakings that were intended to improve the NYSE’s regulation of all its floor members, including specialists. This was in accordance to the NYSE’s regulatory failure to detect and stop unlawful proprietary trading including “frontrunning” of customer orders by some of its independent floor brokers in late 1990s. However, NYSE failed to thoroughly investigate indications of possible violations by its specialists.

Read More
1766 Words | 8 Pages

Should America implement a flat tax? According to Steve Forbes “For many years, people have said, ‘Make the rich pay more,’ and many politicians have said, ‘The rich people need to pay their fair share,’” (Forbes) but what do we think is really fair?

Read More
1249 Words | 5 Pages

Insider trading has received a bad name in the recent decades. The popular press makes it sound as an evil practice where the people engage in are totally lacking of the ethical principles. Particularly all the articles have been written on insider trading that have been treated in the recent years as something as a wrongful act. The exceptions were drawn out by the work of Manne (1966) that people profit from the usage of the inside information such as the tax preparers use the expert knowledge of the tax law to save their clients from the excess money spent on the tax return preparation (McGee R. W., 2007). Arguments have been raised if insider trading is not a fraudulent act and therefore is it legitimate to legalise it?

Read More
940 Words | 4 Pages

2.2 CORPORATE SOCIAL RESPONSIBILITY Corporate social responsibility (CSR) or CSR activity is seen as a complex and contested area, which is rapidly gaining importance from businesses all over the world (Vaaland & Heide, 2008). Mintzberg (1983), refers to Elbing (1970) when he states that the concept of social responsibility has been discussed academically by professors, pragmatically by businessmen, politically by public representative and approached from various angles philosophically, psychologically, sociologically, economically even aesthetically. The complexity of the concept has lead to variations of definitions some boarder than others with no consensus on a generally accepted definition. The difficulty with defining CSR sterns from

Read More

More about Pros And Cons Of Sarbanes-Oxley Act Of 2002

Open Document