The Sarbane-Oxley Act (SOA) Essay -- Corporate Governance

INTRODUCTIONThe frequent Company Accounting Reform and Investor Protection Act was signed into practice of law by President Bush on July 30, 2002. The law is now cognise as The Sarbane-Oxley Act (SOA). The SOA has eleven titles within the act and numerous sections, pertaining to ethics, accounting, pecuniary reporting, responsibilities of officers, whistleblower protection, and increased criminal penalties built upon prior securities laws. SOA is the most comprehensive examination securities legislation written since the 1940s. In the early part of the twentieth vitamin C companies did not have the sophistication and abilities of the modern company in wishing to information technology, number of accountants, advisors and analysts. This legislation is a big step toward c atomic number 18 U.S. law up to date with modern business practices. The Sarbane-Oxley Act was infallible to protect the U.S. economy and restore investor impudence after the many years of dishonest busines s practices by ENRON, WORLDCOM, TYCO and other companies. The practitioners of shady accounting and voraciousness brought about a collapse in stock prices, shook investor confidence and hurt the credibility of all publicly traded companies. A mass bail-out by large stockholders ensued however the average small investor held on, hoping that the stock would stabilize and accept the reassurances of companies, that claimed they were financially well-off when they were actually worth less than what they owed. In the end, investors and lower-rung employees of these companies were devastated financially. The underhandedness and edacity of these corporate officers had the potential to hurl the U.S. economy out of control. The small investors, who are registered voters demanded action. This paper will review the sections of The Sarbane-Oxley Act, highlight their broad implications and discuss compliance. obligingness will cost all publicly traded companies a great pull off of money. ?De loittes Point of View? will be used to illustrate that compliance, when embraced right and approached positively can bring rewards for companies in the long term. SECTIONSThe sections that follow are a simplification of the Sarbane-Oxley legislation. There are many niches that will exact attorneys, accountants and advisors. Keep in mind all prior SEC (securities transmute commission) legislation such as (The Securities Act of 1933, Securiti... ...s Point of View, Sarbanes-Oxley Compliance. (Online). 8 Pages. Retrieved January 16, 2003 from http//www.deloitte.com/dtt/section_node/0%2C2332%2Csid%25253D5601%2C00.htmlPriceWaterhouseCoopers. (2003). Key Elements of Antifraud Programs and Controls, A White Paper. 29 Pages (Online). Retrieved January 16, 2003 fromhttp//www.pwcglobal.com/Extweb/NewCoAtWork.nsf/docid/D0D7F79003C6D64485256CF30074D66CSecurities and Exchange Commission. (2002). Proposed Rule assay-mark of Disclosure in Companies? Quarterly and Annual Reports. 6 Pages (Onli ne). Retrieved January 17, 2003 from http//www.sec.gov/rules/proposed/34-46300.htm Securities and Exchange Commission. (2003). The Laws That predominate the Securities Industry. 5 Pages, (Online). Retrieved January 17, 2003 from http//www.sec.gov/about/laws.shtmlsecact1933 Securities and Exchange Commission. (2003). Summary of SEC Actions. 3 Pages, (Online). Retrieved January 17, 2003 from www.sec.gov/ countersign/press/2003-89a.htm Worthen B. (2003, December 1). A Funny Thing Happened on the commission to Compliance. CIO Magazine, Retrieved January 15, 2003 from http//www.cio.com/archive/120103/oxley.html