The Sarbanes-Oxley Act is one of the most important pieces of legislation affecting corporate governance and the practice of public accounting since the US securities laws of the early 1930s. The Act is relatively recent in the history of American accountancy. It was signed into law on 30 July 2002 by President Bush. The Act was named in reference to Senator Paul Sarbanes and Representative Michael G. Oxley who were mainly responsible for the creation of such an important law. The main purpose of the Act is to protect shareholders and investors by inspecting and monitoring companies. In order to achieve that goal, the Act requires public companies to improve the accuracy and reliability of corporate disclosures, by "certifying" truthful financial information. It is important to notice that the Act is made for all the companies which are publicly traded on the American financial markets: even for the smallest ones and even for the foreign companies.
[...] Conclusion The Sarbanes-Oxley Act is a good law for investors because they have now a protection against the previous power of the CEO and of the corporate finance in general. However, big companies face major difficulties because of the cost of the Act for the firms. And it is even worse for small business management who encounters problems in using information technology, realizing board and audit committee recruitment, and achieving the right level of the quality of internal controls. References ome Internet Websites Some information from a Website dedicated to the Sarbanes Oxley Act: http://www.aboutsarbanesoxley.com/ Some basic information about all the changes from a Website: http://knowledgehills.com/Sarbanes/sarbanes- oxley.aspx?ref=aw&mt=broad&skw=sarbanes%20oxley&bkw=sarbanes_oxley&gclid=CJ- k5or83osCFQlQWAod7lJocQ Some data from another [...]
[...] The Sarbanes-Oxley Act Historical Introduction The Sarbanes-Oxley Act is one of the most important pieces of legislation affecting corporate governance and the practice of public accounting since the US securities laws of the early 1930s. The Act is relatively recent in the America accountancy history: indeed it was signed into law on 30 July 2002 by President Bush. The Act was named in reference to Senator Paul Sarbanes and Representative Michael G. Oxley who were mainly responsible for the creation of such an important law. [...]
[...] Recent issues relating to the Law Issues have been raised concerning the workings and impact of this law: I will study 2 of them: - The cost of the Sarbanes-Oxley Act for companies: Everyone admits now that the 2002 Sarbanes-Oxley law has been a success. However the impact of the Act is still a problem for some companies especially because of the costs. It seems to be particularly true with Section 404 of Sarbanes-Oxley which “requires company management to develop processes to monitor internal controls over financial reporting”. [...]
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