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This addresses questions related to the Sarbanes-Oxley Act.

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I need some help with answering the following questions concerning the Sarbanes-Oxley Act. Thank you.

When the Sarbanes-Oxley Act passed, it was in the wake of various corporate scandals that hit the business world and challenged the fiscal accountability of public corporations.

(1) Describe the main intentions and objectives of the SOX Act, citing and documenting your sources in your reference list.

(2) The anticipated impacts and the complexity of the requirements of the Sarbanes-Oxley Act were unknown at that time. How successful do you think Sarbanes-Oxley has been in meeting its objectives?

(3) Where do you think it has fallen short?

(4) Has there been any unintended impact from this legislation? Please identify and explain specific examples.

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Discussion for each of your study questions --

1. The SOX Act was created as a reaction to the accounting scandals that took place in the early 2000s, like Enron and WorldCom. When a company as big as Enron collapses, it actually has the ability to shake the economy, which is what happened. People lost jobs, investors lost their life savings in many cases, people that had worked hard for years lost their retirement accounts. This made a tremendously grave impact on the accounting profession and on the economy. There is a great reference to the various sections of the act located here:

www.soxlaw.com

This is a very comprehensive, user-friendly site that describes the regulations required for each section. Essentially, the SOX Act focuses on establishing proper corporate governance, internal controls, and full disclosure principles. These elements work together to ...

Solution Summary

This solution addresses four questions related to the Sarbanes-Oxley Act, which are:

When the Sarbanes-Oxley Act passed, it was in the wake of various corporate scandals that hit the business world and challenged the fiscal accountability of public corporations.

(1) Describe the main intentions and objectives of the SOX Act, citing and documenting your sources in your reference list.

(2) The anticipated impacts and the complexity of the requirements of the Sarbanes-Oxley Act were unknown at that time. How successful do you think Sarbanes-Oxley has been in meeting its objectives?

(3) Where do you think it has fallen short?

(4) Has there been any unintended impact from this legislation? Please identify and explain specific examples.

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See Also This Related BrainMass Solution

The Enron Scandal and SOX

Topic: The Enron Scandal and SOX

The Term project is a research paper on the above topic. Your paper should be Professional in appearance, at least 5 typed pages, double spaced. You should attach a bibliography page citing all sources of your information.

Of major importance will be your own thoughts, opinions and conclusions. Your grade will be determined on the quality of research, the organization of your paper, your own input and the professional appearance of your work.

Based on your research, you paper should at a minimum include responses to the questions below but you are not limited to these areas only.

? What was the Enron Scandal about? Discuss specific accounting issues related to the scandal
? Did Enron violate GAAP?
? How did the Government address this scandal?
? What is the Sarbanes Oxley Act?
? What specific provisions of the act addressed the areas on Enron accounting that caused the scandal?
? In your opinion, would these provisions of the Sarbanes Oxley Act prevent a similar scandal for occurring?
? Does SOX restore public confidence in the accounting profession?
? If you were a legislator, what else would you do?

If during your research and preparation of your paper you have questions, please feel free to see me.

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