Purchase Solution

SOX and the PCAOB

Not what you're looking for?

Ask Custom Question

How has the Sarbanes-Oxley Act (SOX) and the Public Company Accounting Oversight Board (PCAOB) affected corporate governance of US companies? Do the benefits of improved disclosure justify the additional disclosure costs? Who gains the most benefit from these disclosures?

Purchase this Solution
Solution Summary

This solution discusses the SOX Act and the PCAOB. The questions presented are thoroughly addressed.

Solution Preview

As an Expert, I cannot write your assignment for you. I can get you started in the right direction, so that you can prepare the answer to your study question. Let's take a look at each part of your question.

How has the Sarbanes-Oxley Act (SOX) and the Public Company Accounting Oversight Board (PCAOB) affected corporate governance of US companies?

-- The PCAOB was created as an act of SOX. Basically, the PCAOB exists solely because of SOX. SOX was created as a reaction to the accounting scandals that took place in the early 2000's. When companies as large as Enron collapse, the market actually shakes, and it becomes a detriment. WorldCom came next, followed by others. When the scandals took place, investor confidence fell to an all-time low. Investors screamed, and rightly so. In order to improve the confidence ...

Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Motivation

This tests some key elements of major motivation theories.

Business Ethics Awareness Strategy

This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

View More Free Quizzes
Related BrainMass Solutions

  • Auditing Standards and Requirements

    Public companies must comply with SOX, and the compliance is regulated by the PCAOB. The PCAOB acts as the oversight authority for SOX and was created as a result of SOX. The SEC also monitors SOX, but not to the same extent that the PCAOB does.

  • Public Company Accounting Oversight Board

    Remember that the PCAOB was created to oversee SOX compliance - that's their only duty and it takes 100% of their time. The PCAOB is very strict (i.e. effective) in enforcing SOX guidelines for both management and CPAs.

  • The Sarbanes-Oxley Act of 2002 (SOX) was a direct result of

    How is SOX enforced? SOX is a joint effort of the PCAOB and the SEC. Violations are commonly discovered by the SEC, when the companies submit their quarterly and annual financial statements.

  • Discuss whether or not the current oversight provided by the

    One of the SOX regulations requires that the CEO and the CFO personally sign an affidavit stating that they are aware of the financial data in the company's financial statements, and that they have personally reviewed the statements, and agree that the

  • Major Changes Implemented by the SOX Act of 2002

    For many years the profession was self-regulated. That is there was no direct Government involvement. - Exactly, and look what happened. Enron, WorldCom, etc, etc. The PCAOB was definitely needed.

  • Financial Implications of the Sarbanes Oxley Act

    The SOX is effective due to its oversight capabilities. The PCAOB and SEC typically work jointly in enforcement, even though it is the primary responsibility of the PCAOB.

  • Accounting Standards: Oversight and Regulatory Issues

    The PCAOB has made one of the most drastic impacts, which can be seen as having both advantages and disadvantages. The PCAOB was created as part of the Sarbanes-Oxley Act (SOX).

  • Congress and the Securities and Exchange Commission

    The primary responsibility of the FASB is to establish, monitor, and revise GAAP and other accounting standards as needed. The main responsibility of the PCAOB is to monitor public companies and their adherence to SOX.

  • Accounting and Audit Enforcement

    All publicly traded companies must comply with SOX, or they face the applicable consequences as set forth by the PCAOB, and also often by the SEC and FASB. In terms of health care organizations, SOX has had a definite impact.

View More Related Solutions