Purchase Solution

Effectiveness of SOX

Not what you're looking for?

Ask Custom Question

Need help on a term paper (APA format) describing aspects of the regulatory environment which will protect the public from fraud within corporations, specifically Sarbanes-Oxley (SOX) requirements. No more than 1300 words.

Evaluate whether SOX will be effective in avoiding future frauds.
Evaluate the effect of regulation on ethical behavior.
Demonstrate an understanding of the regulatory environment.

Please include citations and references.

Purchase this Solution
Solution Summary

Discusses effectiveness of SOX in preventing financial frauds.

Solution Preview

SOX has been very effective in avoiding future frauds, as evident by the significant decline in financial frauds and decline in restatement of financial statements. Securities related class action lawsuits have also significantly declined. Overall, the act has strengthened the internal control, corporate governance and audit of public companies which, in turn, has been very effective in avoiding financial frauds in organizations.

SOX has significantly improved investor confidence by enhance the reliability and accuracy of financial disclosures. It has addressed issues pertaining to conflict of interest in the accounting profession by putting restrictions on the functions and services provided by auditors to the companies that they are auditing. SOX has significantly enhanced accountability on the part of the top management by requiring them to certify financial statements. Audit firms have to report to independent audit committees as per this act. ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

SWOT

This quiz will test your understanding of the SWOT analysis, including terms, concepts, uses, advantages, and process.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

Change and Resistance within Organizations

This quiz intended to help students understand change and resistance in organizations

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

View More Free Quizzes
Related BrainMass Solutions

  • Public Company Accounting Oversight Board

    Evaluate the effectiveness of the PCAOB's oversight related to CPA for addressing material weaknesses in internal controls. We have the same type of effectiveness from the PCAOB with CPAs, but written specifically for CPAs.

  • Benefits of Sarbanes-Oxley (SOx)

    To meet this goal, internal controls are necessary, and management must: Accept responsibility for the effectiveness of the internal control over financial reporting, Evaluate the effectiveness of the company's internal control over financial reporting

  • SOX 2002

    After SOX, the auditors perform a fraud risk assessment, understand the follow of common transaction, and assess the design and effectiveness of certain internal controls.

  • Three important improvements made in governance by SOX

    As a result of making officers such as the CEO and CFO personally liable to the issuer for any material misstatement, these officers are encouraged to conduct periodic evaluation of the effectiveness of the company's internal control. 3.

  • Dodd-Frank Wall Street Reform and Consumer Protection Act

    Section 404(b) requires the company's independent auditor to attest to management's assessment of the effectiveness of those internal controls.

  • Auditing a dynamic concept commencing where accountancy ends

    In effort to enhance the efficiency and effectiveness of audits, auditing techniques used by many industry professionals prior to SOX, were no longer deemed acceptable.

  • Sarbanes Oxley Act (SOX) Effective Control Systems

    SOX is corporate accountability. During the time period between 2000 and 2002 there were a series of large corporate frauds (Enron, WorldCom and Tyco). SOX primarily solves the problem of conflict of interest and incentive compensation issues.

  • Integrity in Financial Reporting

    Not only does management have to document a solid internal control environment and each of the main elements that make up that environment, but SOX also requires that the auditor report on the effectiveness of those controls.

  • Accounting and Audit Enforcement

    A thorough discussion of relevant mandates and effectiveness is included.

View More Related Solutions