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 October 1, 2020, 8:38 pm ad1c9bdddf
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 ...
What accounting issues does the Sarbanes-Oxley Act of 2002 address