Sarbanes–Oxley Act
Sarbanes–Oxley Act
“Compliance” Please respond to the following: DQ 1…$7
- Examine the Sarbanes–Oxley Act (SOX). In your opinion, determine whether SOX has been able to achieve what it was intended to do and if it has reduced the unethical business practices that led to its enactment. Provide two examples to support your reasoning.
- Evaluate the five essential control components for managers and auditors established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Determine the control that is the most critical for the well-being of any company and explain why.
2 references
150 words
use references
preview of the answer…
The Sarbanes-Oxley Act (SOX) refers to a legislation passed by the United States Congress to provide protection to the public and shareholders against fraudulent practices and accounting errors in an organization. The SOX Act was introduced to address the increasing financial scandals witnessed in the early 2000 involving large corporations such as Enron and Tyco (Johnson, 2003). Largely, the Sarbanes-Oxley Act has achieved its intended purpose because it has helped companies to understand the maintaining ethical business practices, and the risks of engaging in fraudulent business practicesAPA 233 words