Sarbanes Oxley

Advantages and Disadvantages of Sarbanes Oxley Sarbanes-Oxley serve of 2002 The Sarbanes-Oxley make for was enacted in 2002, as a solution of the corporate management abuses that took place during the 1990s and early 2000s in publicly traded American corporations (Raabe, Whittenburg, Sanders, & Sawyers, 2009, p. 26). This Act resulted in the creation of the middling Company Accounting Oversights Board (PCAOB), which is a non-profit committee whose duty is to supervise publicly traded attach tos monetary wrap up methods and the independent tenders who certify their financial statements(Grumet, 2007). In addition to the PCAOB, the Sarbanes-Oxley Act also resulted in the creation of compliance laws for the publicy traded companies affected by the legislation. Tax Advantages of Sarbanes-Oxley The Sarbanes-Oxley Act requires publicly traded companies to have the financial statements that be filed with the Securities and Exchange Commission certified by a n independent auditor (Fisher College of Business, 2011). According to Wes Scott (2004, p. 36), due to this regulating, companies have now focused committees and their members on carrying out their duties. Scott also tell his readers that the rules set forth in Section 404 of the Sarbanes-Oxley Act will be valuable to a corporation because it is required that the company provide documentation of financial reporting. Processes are only effective when they are followed, and an essential step in compliance is documentation (Scott, 2004, p. 36). The Sarbanes-Oxley Act made it required for a company to provide its employees with an outlet to voice their complaints. This regulation caused many companies to create hotlines, which enables anonymous phones calls from employees to voice concerns about the occupancy (Heffes, 2003, p. 18). These hotlines can prove to be valuable to a company because management is informed of issues, financial and nonfinancial, of which they, o therwise, would not be...If you want to ho! agy a full essay, order it on our website: OrderEssay.net

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