Explore BrainMass

Explore BrainMass

    Sarbanes-Oxley Act of 2002-Accounting issues

    Not what you're looking for? Search our solutions OR ask your own Custom question.

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

    What accounting issues does the Sarbanes-Oxley Act of 2002 address? How will the provisions of this Act change the behavior of senior corporate executives and accounting professionals? Do you think this will be an effective solution or just create additional compliance paperwork? Explain.

    © BrainMass Inc. brainmass.com March 4, 2021, 8:09 pm ad1c9bdddf

    Solution Preview

    The US Public Company Accounting Reform and Investor Protection Act of 2002 or the Sarbanes-Oxley Act of 2002 aims to create auditable business processes, improve financial transparency, and create strong internal operational controls. It requires that companies prepare and maintain documentation of financial reporting processes, create internal controls, evaluate and correct control deficiencies. This legislation has led to long overdue technology and process simplification and standardization.
    (Source: http://www.ketera.com/solutions/sox.html )

    It is an act passed in 2002 for significantly imporving the accounting processes, financial reporting requiremets and financial control systems within an organization. The act was passed in light of the severe accounting scandals such as Enron. The authorities, in order to prevent such instances in the future, enacted this act to enchance financial control systems and reporting mechanisms for better transparency and internal control.

    Although SOX has significantly increased the compliance related costs, it has ensure ...

    Solution Summary

    What accounting issues does the Sarbanes-Oxley Act of 2002 address