Premium Essay

Law & Regulatory: What Does the Sarbanes-Oxyel Act Have

In: Business and Management

Submitted By mwindi
Words 8928
Pages 36


PROF. ……..

AUGUST 3, 2012

Table of Contents
Chapter One (Introduction) 4

1.1 Background Information 4

1.2 Justification of the Study 6

2.0 Chapter 2: Literature Review 9

2.1 Introduction 9

2.2 Factors related to Domestic Violence 9

2. 3 Remedy to Domestic Violence. 11

2.4 Challenges in Resolving Domestic Violence 15

2.5 The Legal Framework 15

3.0 Chapter 3: Methodology 17

3.1 Introduction 17

3.2 Sample Design, Sampling Procedure and Data Collection. 17

3.3 Data Source and Data Collection Methods 18

3.4 Choice and Limitations of the Research Methods 19

3.5 Data Analysis and Ethical Issues 20

3.6 Problems, Constraints and Limitations of the Study 21

4.0 Chapter 4: Discussion of the Findings 22

4.1 Causes of Domestic Violence 22

4.2 Consequences of domestic violence 25

5.0 Chapter 5: Conclusions and Recommendations 29

5.1 Conclusion 29

5.2 Recommendations 31

Chapter 6: References 32

Appendices 34

6.1 Appendix One (Questionnaire and Interview Guide) 34

Chapter One (Introduction)

1.1 Background Information

Since the beginning of the 20th century when the international community came up with the law guiding human rights, various nations have also enacted specific bills to provide equal rights to their citizens. However, there are certain aspects which are common to all human rights across the globe. That is; they are inalienable, indivisible and inherent in every human being. Unfortunately, the well pronounced human rights as…...

Similar Documents

Premium Essay

How Does the Sarbanes Oxley Act Relate to Internal Controls?

...How Does the Sarbanes Oxley Act Relate to Internal Controls? Strayer University December 3, 2010 In order to have a full understanding of what Internal Controls are and how they relate to The Sarbanes Oxley Act, I decided to do a little research on Internal Controls, first. (Horngren, Harrison, and Oliver, 2009, pp. 380-384), defines Internal Controls as an organizational plan and all the related measures adopted by an entity to safeguard assets, encourage employees to follow company policy, promote operational efficiency, and ensure accurate and reliable accounting records. A business can achieve its internal control objectives by applying five components. Monitoring of controls, this can done by internal auditors or external auditors. Information system allows the organization to keep track of assets and measure profits and losses. Control procedures are designed to ensure that the business’s goals are achieved. Risk assessment is an assessment that help the company identify its amount of risk. All companies need internal control procedures. Companies should employ employees that are competent, reliable, and ethical. A business with good internal controls should never overlook important duties. All employees should have certain responsibilities and understand those responsibilities. There should also be separation of duties, this will limit fraud and promote accuracy of the accounting records. No one person should be responsible for every......

Words: 705 - Pages: 3

Premium Essay

Sarbanes Oxley Act of 2002

...Sarbanes Oxley Act of 2002 Daniel Alvalle BUS 670 Legal Environment Instructor: Peter McCann 7/29/2013 If you were an investor would you want your money protected? Would you be skeptical about investing in companies since the securities fraud scandals that have happened recently? The answer is most likely, “yes”, to a certain degree. With the news about unethical business practices and companies not following regulatory guidelines, it is difficult to ignore the risk that is involved with trusting someone else with your investment. But there is an answer to help protect companies and shareholder, and it comes in the form of a regulatory organization that was put in place in 2002. That was put in place as a direct response to the corporate scandals of Enron and other scandals that followed, and was also put in place to help restore confidence in the financial market. SOX-Applies only to US companies on the US exchange, and is an Act put in place in 2002 to mandate all publicly traded corporations to maintain adequate internal control. SOX basically make sure that all US publicly traded corporation do what is in the best interest to protect the investment of stockholders. SOX-Sarbanes-Oxley Act of 2002 is an ACT that was put in place where all publicly traded U.S. corporations are required to follow certain guidelines and requirements. Basically, these systems were put in place because of securities fraud issues that came to light in the early 2000’s, and......

Words: 2407 - Pages: 10

Premium Essay

Sarbanes-Oxley Act Questions

...independent accountants. Today scrutiny of the accounting industry is more intense as laws are created to punish those that choose to falsify information. This paper aims to explain the importance of the Sarbanes-Oxley Act (SOX) as it relates to the internal control, Chief Executive Officers and Chief Financial Officers. We will also identify the pros and cons of the Sarbanes-Oxley Act (SOX) and changes that could be made in order to pose arguments from both sides of the act. Introduction In the early 2000’s, one of the darkest times ever experienced in the history of accounting occurred due to numerous scandals. The results of these scandals from companies lead to terrifying actions, which included the downfall of one of the largest accounting corporations, Arthur Anderson, for their help with Enron. Companies such as Enron, Tyco, and WorldCom have led to the passing of the Sarbanes-Oxley Act (SOX) due to their financial reporting scandals (Forbes, 2013). With the passing of SOX in 2002, the falsification of financial statements by companies became a criminal offense. The passing of the SOX act posed as a challenge to many companies as it enforced businesses to make ethical decisions. If companies fail to comply with this law, they will be accountable for their actions. Prosecution and jail time are some of the punishments put in effect if CEOs and CFOs are found guilty of disobeying this law. A company’s financial information is considered to be the heartbeat of......

Words: 2955 - Pages: 12

Premium Essay

Sarbanes-Oxley Act

...“President George W. Bush signed the Sarbanes-Oxley Act ( SOX) of 2002 (Public Law 107-204) on Tuesday, July 30, 2002. Congress presented the act to the president on July 26, 2002, after passage in the Senate by a 99-0 vote and in the House by a 423-3 margin” (The sarbanes-oxley act). A new federal law was passed in reaction to corporate scandals such as the Enron, WorldCom, Tyco cases. The Sarbanes-Oxley Act puts extreme pressure on companies accounting practices and annual reports. Simply put, the act was created to protect investors from corporate corruption, and accounting misconduct. This act also created a new agency called the Public Company Accounting Oversight Board, or PCAOB. The main purpose of Sarbanes Oxley Act is to ensure that the corporate sector works with transparency and provides full disclosure of information as and when required. The transparency purpose of Sarbanes Oxley Act is fulfilled by ensuring real time disclosure of information, the adherence to guidelines of the Generally Accepted Accounting practices, full financial details being made available of all the transactions not mentioned in balance sheet. This purpose of Sarbanes Oxley Act is also fulfilled by an expanded disclosure of financial and non financial control measures in force in every company. Similarly, public certification of these internal controls and financial measures also helps fulfilled the purpose of Sarbanes Oxley Act (Bing). The objective of Sarbanes Oxley Act is to make......

Words: 1587 - Pages: 7

Premium Essay

Sarbanes Oakley Act

...Running Head: Effects Of Sarbanes-Oxley Act SOX The Effects of Sarbanes-Oxley Act SOX Kyle Bedgood Strayer University Abstract This paper provides an in-depth evaluation of Sarbanes-Oxley Act, which is said to be promoted to produce change in the corporate environment, in general, by stressing issues of public accountability and disclosure in the financial operations of business. It explains how this is an Act that represents the government's and the Security and Exchange Commission's concern in promoting ethical standards in terms of financial disclosure in the corporate environment. It also addresses the current criticism of the exportation of U.S. corporate governance norms under the Sarbanes-Oxley Act, focusing on the application of the audit committee requirement to foreign issuers from European countries with codetermination laws, and the prevention of loans to executives with respect to German issuers. In reply to such criticism, the Securities and Exchange Commission (SEC) has already granted foreign issuers several limited exemptions from the Act, as well as an exemption dealing with the audit committee independence requirement, motivated by the desire to retract foreign companies that canceled listings in the U.S. in response to the Act. This paper provides additional legal and economic justifications favoring the exclusion of foreign companies from the audit committee and loan prohibition requirements. Corporate greed and corruption has altered the face...

Words: 1578 - Pages: 7

Premium Essay

Sarbanes Oxley Act of 2002

...Sarbanes-Oxley Act of 2002 ACC/561 Sarbanes-Oxley Act of 2002 Following a number of discovered fraud scandals committed by well-known corporations and in order to restore public confidence in the stock market and trading of securities, the United States congress passed the Sarbanes-Oxley Act in the year 2002. As a result of the act endorsement by the New York Stock Exchange and the Securities and Exchange Commission, among many other national overseeing committees, a number of rules and regulations were proposed and adopted and that demanded new processes and programs be instilled for ensuring compliance with the requirements of the new law. The new rules and regulations pertaining to the enacted law have a common goal: 1. Pass accountability and responsibility of the accuracy and truthfulness of financial statements directly to the executives and board members of a company or corporation 2. Increase transparency of corporate accounting and performance record reporting 3. Business reporting ethics to be emphasized with in-place steps and procedures adopted to detect and prevent any type of fraud or manipulation of stakeholders for private benefit. Traditionally, preparation of a company’s financial statements including day-to-day management of the company has been the responsibility of the board of directors and upper management team of the company. The new law clearly rests the responsibility for accuracy and truthfulness of the published financial records......

Words: 1295 - Pages: 6

Premium Essay

Sarbanes Oxley Act

...IMPORTANT AICPA INFORMATION ON SARBANES-OXLEY |How the Sarbanes-Oxley Act of 2002 Impacts the Accounting Profession (AICPA) | | | | | | | | | | | | | | | | | | | | ...

Words: 4973 - Pages: 20

Premium Essay

Sarbanes Act

...Sarbanes-Oxley Act of United States passed in 2002. It brought the most important reform in the current public financial reporting of United States. The act was developed to reinstate the confidence of public in the public companies management after the scandals of WorldCom, Enron, and others. Sarbanes-Oxley has influenced the liabilities and responsibilities of Board of Directors, Corporate Executives, Auditors, Audit Committees, and Analysts (Advantages and Disadvantages, 2012). The strength of the act is companies have better internal control environment. This will lead to more accurate information being available to investors who are more confident in making investing decisions. All participants in financial reporting have increased responsibilities and consequences for not living up to those responsibilities. The weakness of the act is the legislation was passed without any specific guidance to companies as to how it should be implemented. As a result, each company had to create its own methodology for ensuring compliance, which was inefficient and expensive. Also Smaller companies that are audited will pay higher audit fees (Hazels & Thornton, 2007). After doing some research the Sarbanes Act is useful for large national, nonprofit organizations. Organizations have a checklist they have to abide by due to the Sarbanes Act. The first item on the checklist is information regarding Insider Transactions and Conflicts of Interest. The second item is Independent and......

Words: 698 - Pages: 3

Premium Essay

Law 421 Sarbanes Oxley Act 2002

...that break out the functions and roles of law in business and society. This is enforced by Congress and many different acts have been passed that in addition to the constitution are the basis of the relationship between law, businesses and society. Mostly it is the basis for how business can or cannot be conducted. The foundation of Congressional powers in business fall under what is called enumerated powers. There are many enumerated powers in which are enforced in business. According to University of Phoenix The Legal Environment of Business: A Managerial Approach: Theory to Practice (2011), “The primary authorization of Constitutional powers is given to Congress under Article I. 2 Congress has enumerated powers in 18 different clauses. The powers that generally impact business owners and managers include (1) the power to regulate commerce ( Commerce Clause ); (2) taxing the citizenry and commercial entities and spending government funds (tax and spend provisions); (3) bankruptcy, patents, and copyrights; and (4) a more general implied authority to make all laws necessary for carrying out its enumerated powers (Necessary and Proper Clause ).” First this explains that Congress has an influence in businesses on how they produce, ship, sell etc. This is a power that comes from the Commerce Clause where Congress can regulate among several states. Congress is able to pass laws when interstate commerce is affected. Another role of law in business is taxes. According to......

Words: 733 - Pages: 3

Premium Essay

What Impact Does Technology Laws Have on Business in America?

...What Impact Does Technology Laws Have On Business In America? Tracy Bennett Herzing University 02/13/2015 What impact does technology laws have on business in America? We live in a world where laws control how America operates and how our society functions (Arndt, n.d.). We also live in a world where technology has taken over and for many it would be inconceivable to imagine living in a world without technology. Technology has changed the way we live and communicate (Winston & Edelbach, 2014, p. 2). Technology has also changed the way companies conduct business. It has opened up new opportunities for companies to gain more business but at the same time has also created new ethical problems and therefore lawmakers have had to design new technology laws that have had a major impact on American businesses. Technology laws can impact American businesses in a variety of ways from software licensing agreements, privacy issues, and the use of electronic signatures. In order to keep up the pace with changing technology businesses continuously change their operating software (Information Technology Law, n.d.). Continuously changing software programs has the benefit of greater profitability for the company but at the same time it can also create some major problems. Business managers and owners can run into legal issues if they do not fully understand the rules and laws of the licensing agreement which could result in a huge lawsuit......

Words: 1009 - Pages: 5

Premium Essay

Law Sarbanes Oxley Act

...Date: The Sarbanes-Oxley act was enacted in the congress after a financial scandal which affected a number of companies and led to the loss of many billions of dollars owned by shareholders in the respective companies (Fletcher & Plette, 2008). To illustrate the severity of the matter under study, the essay shall use the case study of one of the culpable companies Enron which necessitated the drafting of the act by Sarbanes and Oxley. Enron applied for deregulation which meant that the company was not liable to comply with the stipulations of the government in relation to the submission of financial records. Due to deregulation, only the Enron executives had the mandate to inspect the financial records and as a result they resulted to the manipulation of the records so that they could dupe investors into investing in the company. They concealed all reports in the financial records which captured the presence of losses in the prior financial years. The company misrepresented the total earnings and revenue and continued to embezzle the revenue provided by investors. Consequently, the investors lived under the perception that the company was making profits and as a result more investors invested in the company for the financial gains. The executives of the company used the money for their personal gains which led to the discovery of the fraud since the company was approaching bankruptcy in 2001 (Sterling, 2002). Sarbanes-Oxley act gives the Public Company......

Words: 407 - Pages: 2

Free Essay

Sarbanes-Oxley Act of 2002

...Sarbanes-Oxley Act of 2002 Andrea Kelley ACC/561 Professor Melinda Gregg November 9, 2015 Introduction A regulatory agency is a representation of a governmental body, which is produced by a legislature. Regulatory agencies are implemented to enforce laws of legislative functions, executive functions, and judicial functions. The regulatory agencies plays a central role in the operation of the financial sector. There are a numerous variances of regulatory agencies, which all serve a different purpose in business law enforcement. Some of which include the Environmental Protection Agency, Occupational Health and Safety Administration, and the Securities and Exchange Commission. For the purpose of this paper, a description of the Securities and Exchange Commission will be given. Further describing the regulations which will protect the public from fraud within corporations and what that represents in the Sarbanes-Oxley Act of 2002. The Securities and Exchange Commission The mission of the U.S. Securities and Exchange Commission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation (, 2013). The SEC is the regulatory agency which governs securities markets and protects investors. It is a regulatory agency which oversees securities transactions, activities of financial professionals and mutual fund trading to prevent fraud and intentional deception (, 2015). The SEC is composed of five......

Words: 1495 - Pages: 6

Free Essay

What Does the Library Have to Offer

...What Does the Library Have to Offer? By: Adan Galarza Instructor: Asif Choudhery Date Submitted: 6/4/2016 The Internet is an interesting place. From search engines like Google and Bing and all the information and research you can do on the internet make life a lot easier. The problem however, is that nowadays a lot of things that are put up on the internet are not credible and sometimes can just be opinions. Although, this is great since it allows you to communicate and gain different perspectives this is also bad since it can lead people to believe that what they are reading is factual which in all reality it is not. Ashford University has outdone themselves by making their Library easy and convenient to use. All the information from databases, journal articles, Ebooks, Encyclopedias etc. are all credible sources. Ashford allows you to use the tools needed to make a well written paper which is what makes their library great and why it has been part of my success as a student here at Ashford. Ashford has the combination of scholarly resources and popular resources. The difference between the two is the fact that scholarly resources written by and for experts. They are peer-reviewed or referred and include bibliographies and/or footnotes. Popular resources are more like magazines and newspapers. They are reviewed by editors and are designed for a broader audience. They contain appealing photos and advertisements along with flashy cover pages to catch the reader’s......

Words: 382 - Pages: 2

Premium Essay

Sarbanes Oxley Act

...Introduction to Sarbanes – Oxley Act of 2002 The Sarbanes – Oxley Act of 2002, also known as the Public company accounting reform and Investor Protection Act of 2002 and commonly called SOX or Sarbox is a United States federal law passed in response to a number of major corporate and accounting scandals including those affecting Enron and WorldCom. The Act establishes a new quasi-public authority, the Public Company Accounting oversight Board for overseeing, regulating, inspecting and disciplining accounting firms in their roles as auditors of public companies. The Act covers issues such as auditor independence, corporate governance and enhanced financial disclosure. Major Provision of Sarbanes – Oxley Act of 2002 The Sarbanes Oxley Act of 2002 established corporate accountability and civil and criminal penalties for white – collar crimes. This act is a United States federal law passed in response to a number of major corporate and accounting scandals including those effecting Enron, Tyco and WorldCom. These scandals resulted in a decline of public trust in accounting and reporting practices. This Act provides regulatory bodies and courts to take various actions – civil and criminal proceedings in connection of misstatements amounting to accounting scandals and fraudulent financial reports, other frauds on securities matters, obstruction of justice and retaliating against corporate Whistleblowers. The Act also enforce tougher civil and criminal penalties for fraud and......

Words: 2181 - Pages: 9

Premium Essay

Sarbanes Oxley Act

...Running head: THE SARBANES-OXLEY ACT: A REVIEW OF THE LITERATURE 1 The Sarbanes-Oxley Act Matthew Gurniak University of Maryland University College Author Note This paper was prepared for AMBA 630, Section 9046, taught by Professor Wylie. Introduction American investors lost confidence in the American market, as a result of several large companies falsifying financial statements. In response to this matter, Congress passed the Sarbanes-Oxley Act (SOX) in the year of 2002 (Rehbein, 2010, p.90). Though there are many benefits that have come out of SOX, many argue that there are several issues that should be addressed. As a team we will discuss the main advantages and disadvantages of the act, the effect the act has had on CEO’s and CFO’s of publicly held companies, how the act has affected the function of internal controls within organizations, and what changes should be made to act. What Are the Main Advantages and Disadvantages of SOX? The Sarbanes-Oxley Act (SOX) has many advantages. There are repeated ethical scandals in business and the majority of the time “ethics and the law run parallel” to each other (Livingstone, 2009, P. 4). The SOX is the first step in holding companies accountable and is a model for accounting practice reform. The SOX controls auditors’ independence and responsibility by fighting business fraud and improving corporate governance. Tsui (2009) stated that “the SOX increases personal liabilities of senior......

Words: 2868 - Pages: 12