Law 421 Sypnosis

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MEMORANDUM
UNIVERSITY OF PHOENIX

DATE:
TO:
FROM:
RE: wherefore was the Sarbanes-Oxley figure out of 2002 created and how does it imp execution financial
reporting today?
Hooper, C. (2010). Why was the sarbanes-oxley act of 2002 created and how does it
Impact financial reporting today? Retrieved from
hypertext transfer protocol://www.charleshooper.net/blog/why-was-the-sarbanes-oxley-act-of-2002-created-
and-how-does-it-impact-financial-reporting-today/

ARTICLE SYNOPSIS

The Sarbanes-Oxley Act (SOX) was passed by Congress in 2002. The SOX Act affected the responsibilities of auditors, boards of directors, and corporate managers with respect to financial reporting. The Act also established the Public Companies Accounting Oversight plug-in (PCAOB) that is now responsible for oversight of financial statement audits of publicly-traded corporations and the disposal of auditing standards in the U.S. The primary purpose of SOX was to increase investor confidence in the financial reports provided by corporations.



The SOX Act of 2002 has had profound effects on financial accounting and auditing practices. Some practices of the SOX Act and related regulations are still being implemented, and there will undoubtedly be revisions and additions to some of these provisions. The extent to which these provisions are successful in increasing the reliability of financial reporting remains to be seen. However, there is no question that the way that boards of directors, corporate managers, and impertinent auditors approach their responsibilities has changed and greater efforts are being made to experience that timely and accurate financial information is provided to investors.

LEGAL ISSUE

The SOX act was implemented after the recent collapse of corporations such as Enron and Adelphia in which falsified and inaccurate financial statements led to their...If you want to shell a full essay, order it on our website: Ordercustompaper.com



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