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Sarbanes Oxley - Current Event

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1) Using the Internet, or other resources, locate a current event article that relates to government regulations or antitrust activities.

Prepare a 750 word paper in which you analyze the economic and ethical implications of the event.

Points to consider include: market outcome, political impact on economic behavior, social diversity, technological innovation, and market structure. Clearly apply economic theory to your analysis for your selected article.

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Sarbanes-Oxley Act Article Analysis

The article "Ignore Sarbanes-Oxley at Your Peril (Brownstone, Kevane & Orellana, 2008) discusses the reasons why the Sarbanes-Oxley Act was enacted and how businesses also need to recognize that even though they are not publicly traded, they are still responsible for keeping track of their records and keeping in compliance with the SOX. The corporate fraud and dishonesty the was present in companies such as Enron Corp, WorldCom, and Adelphia Communications, Inc. required the Federal government to enact legislation that would protect the free enterprise system within the United States. The article goes on to discuss that even though after years of passage, many companies still believe the act applies only to large, publicly traded organizations. Not recognizing that the provisions set forth are meant for any public or private entity. The article also summarizes each section and talks about the financial implications on organizations both from compliance and a business operations standpoint.
The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board (PCAOB) that is responsible for regulating accounting firms that perform audits of publicly held companies. The PCAOB was established as a result of an ...

Solution Summary

This solution discusses a current event related to governmental regulations and antitrust activities; specifically the Sarbanes Oxley Act.