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Sarbanes-Oxley Act and Section 803

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Do we really need to have the CEO and CFO sign off on the quarterly and annual reports? What's wrong with delegating this responsibility to another person in the organization?
Do you agree with Section 803 of SOX? Should any judgement resulting from securities fraud be nondischargeable? Why or why not?

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Do we really need to have the CEO and CFO sign off on the quarterly and annual reports? What's wrong with delegating this responsibility to another person in the organization?

-- We absolutely need the top two executives to personally sign off on the quarterly and annual reports. We want the top two people to be personally accountable for the statements, for a few different reasons. All of the reasons are based on the same premise, which is accountability. When Enron collapsed, the problem is that the company was so huge, that it affected the economy due to its immediate impact on the stock market. People lost jobs, pensions, benefits, and in many cases, investors actually lost their life savings. The top Enron executives claimed many times throughout their trials that in many instances, they simply "didn't know" what was going on. There was a great deal of legislation that came from the accounting scandals during that time period, and SOX was one of the main forms of legislation. When SOX ...

Solution Summary

This solution discusses SOX law and if the executives should be required to sign an affidavit verifying the validity of the financial statements. This solution also discusses Section 803 and its legitimacy.

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Assignment on Sarbanes Oxley Act

Respond to the following question:

How do unethical accounting practices affect internal and external stakeholders? Cite at least one regulation to present the legal perspective.

The Sarbanes-Oxley Act contains ten titles or sections.

Summarize the major reform principles of any three titles.
Select one major corporation failure from the past ten years, and analyze how it could have been avoided if the principles of Sarbanes-Oxley would have been followed.

By April 26, 2015, in a minimum of 400 words, post a summary of your findings.

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