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Law 421 Final Essay

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MEMORANDUM
UNIVERSITY OF PHOENIX

DATE: March 21, 2015
TO: Ric Blackwell
FROM: Shantele Norwood
RE: The Sarbanes-Oxley Act: Possible impacts on privately held companies by Justin G. Klimko

The Sarbanes- Oxley Act: Possible impacts on privately held companies Most provisions of the Sarbanes- Oxley Act apply only to publicly held reporting companies. Privately held companies doing business with public companies subjected to the act may have certain Sarbanes- based provisions imposed as a matter of contract. Privately held clients should expect that some of these concepts will filter into professional responsibility rules.

Certain provisions of Sarbanes – Oxley are directly applicable to privately held companies. Privately held companies doing business with public companies subject to the act may have certain Sarbanes- based provisions imposed as a matter of contract. Attorneys and their privately held clients should expect that some of these concepts will filter into professional responsibility rules.

The Sarbanes- Oxley Act has created a positive impact on the ethical culture of large corporations. Changes in corporate governance have made it much more difficult for executives to make decisions that could cause corporate collapse. A full board of directors creates a system that can fully comply with federal financial reporting laws. Even though the privately held companies may be held to have certain Sarbanes- based provisions it’s okay in many ways. In conclusion it does not matter if some privately own business have to comply with the Sarbanes- Oxley Act because the act is great and has did a lot of good things. The Sarbanes-Oxley Act of 2002 (SOA), has created a new system of checks and balances that will have a significant and long-lasting impact on corporate America as

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