Week Three Learning Team Reflection
In 2002 an Act called Sarbanes-Qxey Act was passed. It was introduced to the House a “Corporate and Auditing Accountability Responsibility, and Transparency Act of 2002” by Michael Oxley. Then passed to the Senate as the “Public Company Accounting Reforms and investor Protection Act of 2002” According to Weikipedia.com it is “An Act to protect investors by improving the accuracy and reliabilities of corporate disclosures made pursuant to the securities laws, and for other purposes such as industry behavior.”
There has been quite a number of accounting scandals over the past several years. This is mainly with the large public corporations. Business scandals have gitten away with misguiding people, businesses by using channels to undereporting liabilities, overstating values such as assets, and even misdirecting funds. Company executives have the ability and unlimited access to working their diveous scheming plans around in order to steal. They can reduce customer's stocks, delay incoming revenue and more. With that said, eleven years ago, that is in 2002, the legislation introduced the Sarbanes Oxley Act. This act introduced major changes in the finance and corporate world. According to "The Sarbanes-Oxley Act Of 2002" (2003), "The Act contains sweeping reforms for issuers of publicly traded securities, auditors, corporate board members, and lawyers. It adopts tough new provisions intended to deter and punish corporate and accounting fraud and corruption, threatening severe penalties for wrongdoers, and protecting the interests of workers and shareholders." This is how the Act changed the practice of accounting. The internal controls comply with the act to emphasize a broad understanding of procedures in an enterprise by providing reasonable guidance so that an enterprise will meet its requirements in every area. The affects