Explore BrainMass
Share

Explore BrainMass

    SOX Compliance

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I need some assistance with this topic: I need to expand my paper and have some more depth to this topic. Can you assist me ? I also need resources.
    Thank you,

    Brief historical summary on SOX enactment
    •The key ethical components of the SOX
    •Social responsibility implications regarding mandatory publication of corporate ethics
    •One of the main criticisms of SOX is that its implementation presents an unfair burden on smaller organizations. Do you agree or disagree with this statement? Why?
    •How might you suggest improvement of the SOX legislation?

    © BrainMass Inc. brainmass.com October 10, 2019, 8:21 am ad1c9bdddf
    https://brainmass.com/business/business-ethics/sox-compliance-621127

    Solution Preview

    Brief historical summary on SOX enactment
    •The key ethical components of the SOX enactment:
    The key components of the SOX enactment include the following:
     Values
     Principles
     Management Support
     Personal responsibility
     Compliance
    "The Sarbanes-Oxley Act which was enacted as a direct result of the Enron case, in which executives falsified financial records to overstate the company's worth - details what financial reporting a company must do."
    Reference: http://smallbusiness.chron.com/key-components-code-ethics-business-244.html
    CHRON
    Title: What Are the Key Components of a Code of Ethics in Business?
    Author: Jeri Sullivan, Demand Media

    The Sarbanes-Oxley Act of 2002 is also known as the Public Company Accounting Reform and Investor Protection Act of 2002 and normally companies refer to it as 'SOX.'

    There were other organizations such as Adelphia, Tyco International, Peregrine Systems, and WorldCom who also were caught for misconduct.

    July 30, 2002, President George W. Bush signed it into law.
    The different components of the law accomplish different forms of compliance:
    1) SOX Section 301 - Reporting Mechanism
    An audit committee of a public company must have procedures in place to handle complaints of any kind of accounting issues that may not seem quite right. There has to be audit compliance procedures internally so that external auditors can immediately ...

    Solution Summary

    The expert discusses SOX and what it covers for every organization. The solution also talks about fairness to business to have to abide by SOX regulations.

    $2.19