History of Sox - 2875 Words

History of Sarbanes Oxley and the Reasons for Enactment Virginia Knight Student ID: 6892460166 Accounting Capstone Senior Seminar in Accounting ACC 499 006016 Spring 2009 Submitted to: Professor Tee Thein June 19, 2009 Abstract: In 2002 the Sarbanes-Oxley Act was passed. This is a mandatory act that all organizations, large and small, must comply with. This legislation introduced major changes to the regulation of financial practice and corporate governance. There are eleven titles to the Sarbanes-Oxley Act. The act is named after its main architect, Representative Michael Oxley and Senator Paul Sarbanes. Former President Bush is quoted saying that it is intended to â€Å"deter and punish corporate and accounting fraud and†¦show more content†¦Ã¢â‚¬Å"The results noted a distinct difference between companies that had reached compliance with SOX and those that had not.† CHAPTER 2 Eleven Titles of SOX The objective of the eleven titles of the Sarbanes-Oxley Act is to ensure that auditors remain independent; corporations and auditors are accountable to the public for the numbers they publish; an independent body governs financial reporting processes; sufficient measures are in place to deter fraudulent activity; financial activities are transparent enough to allow fraud detection to occur; and if fraud is detected, someone is held responsible. Public Company Accounting Oversights Board Section 101 of the Sarbanes-Oxley Act establishes the Public Company Accounting Oversights Board (PCAOB). The Board consists of five financially-literate members that are appointed for five-year terms. Three of these members must not be a CPA currently nor have been one in the past. The other two members must be, previously or currently, a certified public accountant. The main focus of this Board is (1) to register along with discipline accounting firms that prepare audit reports on companies that are public; (2) conduct inspections and/or investigations of registered accounting firms that audit public companies; and (3) establish audit and accounting standards. Auditor Independence Sections 201, 203 and 204 outline theShow MoreRelatedSports Stars: 1919 Black Sox Scandal Essay759 Words   |  4 Pagesbaseball played on the computer, baseball’s tradition is directly related to America’s history. The Black Sox Scandal was probably the most famous scandal in the history of baseball. Although betting on baseball and having â€Å"fixed† games in the regular season was â€Å"normal† in the early 20th century this was something no one had ever seen. The Scandal occurred in 1919 when 8 of the players from the Chicago White Sox had lost the World Series to Cincinnati Reds. â€Å"Shoeless† Joe Jackson, Eddie Cicotte,Read MoreSarbanes Oxley Memo1410 Words   |  6 Pagesconsultants for Ancher Public Trading (APT), Learning Team A would like to discuss the implications of the Sarbanes-Oxley (SOX) legislation. This memorandum provides a brief history of SOX ¡Ã‚ ¦s creation, explains the relationship amongst the FASB, SEC and PCAOB, describes the pros and cons of SOX, assesses the impacts of SOX, and lists ethical considerations of SOX. History of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response to the high profile financial scandals, such as seen with EnronRead MoreYankees vs. Red Sox844 Words   |  4 PagesEssay Three Argumentation and Persuasion Despite the die-hard commitment of many Boston Red Sox fans, the New York Yankees remain, by far, the most accomplished team in Major League Baseball. The rivalry between New York and Boston is not a new phenomenon at all. This resentment has existed since shortly after the first ever World Series game in 1903. It all began in December of 1920 when the Red Sox sold player, Babe Ruth to the New York Yankees, which would come to be known as the Curse ofRead MoreThe Sarbanes Oxley ( Sox ) Act Of 20021617 Words   |  7 PagesSarbanes-Oxley (SOX) Act of 2002. A brief historical summary of SOX will be presented, including the events leading up to its passage. The key ethical components of SOX will be identified and explained. The social responsibility implications of the mandatory publication of corporate ethics will be assessed. One of the main criticisms of SOX has been its implementation costs, and this specific criticism will be addressed in regards to smaller organizations. Finally, potential improvements to the SOX legislationRead MoreThe Sarbanes Oxley Act Of 2002 Essay1070 Words   |  5 PagesIntroduction There have been several breaches of ethical conduct since the passing of Sarbanes-Oxley Act of 2002. This Act was placed into law to protect the consumer against fraudulent activity by organizations. This paper will provide a brief history of the law and discuss some of the ethical components and social implications on corporations. This research will provide information on how the Sarbanes-Oxley Act affects smaller organizations and how it encourages employees to inform of wrong doingsRead MoreThe Black Sox Scandal : A Fix Game Against The Chicago White Sox1227 Words   |  5 PagesThe Black Sox Scandal is a fix game against the Chicago White Sox and the Cincinnati Reds. This game was fixed by eight players from the Chicago White Sox. Players felt like they were not getting paid enough and their coach was treating them badly. The 1919 World Series was a game that changed baseball forever. There became a point where the line between ball players and gamblers were blurred. In 1919, the Chicago white coach Charles Comiskey was the main cause of The Black Sox Scandal. If coachRead MoreThe Boston Red Sox Won The World Series For The First Time1458 Words   |  6 Pages In 2004 the Boston Red Sox won the World Series for the first time in 86 years. The Chicago Cubs won the World Series in 2016 to end a 108 year championship drought. What do they have in common? The teams both had a success in the early 20th century, but both blundered for extensive amounts of time before winning another world championship. Both had to overcome a huge deficit to complete their championship winning seasons. Both teams were coming off a successful season the year before, and hadRead MoreEssay on The 1919 Black Sox Scandal740 Words   |  3 PagesThe 1919 Black Sox Scandal The 1919 World Series resulted in the most famous scandal in baseball history. Eight players from the Chicago White Sox (later nicknamed the Black Sox) were accused of throwing the series against the Cincinnati Reds. Details of the scandal and the extent to which each man was involved have always been unclear. It was, however, front-page news across the country and, despite being acquitted of criminal charges, the players were banned from professional baseballRead MoreThe Sarbanes Oxley Act Of 20021525 Words   |  7 Pages2002 (Cheeseman, 2013). Congress ordered the Sarbanes-Oxley Act of 2002 (SOX Act) to shield customers from the fraudulent exercises of significant partnerships. This paper will give a brief history of the SOX Act, portray how it will shield general society from fraud inside of partnerships, and give a presumption to the viability of the capacity of the demonstration to shield purchasers from future frauds. History of the SOX Act Congress established the Sarbanes-Oxley Act of 2002, which is otherwiseRead MoreThe Black Sox Scandal : A Fix Game Against The Chicago White Sox1227 Words   |  5 PagesThe Black Sox Scandal is a fix game against the Chicago White Sox and the Cincinnati Reds. This game was fixed by eight players from the Chicago White Sox. Players felt like they were not getting paid enough and their coach was treating them badly. The 1919 World Series was a game that changed baseball forever. There became a point where the line between ball players and gamblers were blurred. In 1919, the Chicago white coach Charles Comiskey was the main cause of The Black Sox Scandal. If coach