The Sarbane-Oxley Act (SOA) Essay -- Corporate Governance

INTRODUCTIONThe Public Company Accounting crystalize and Investor Protection Act was signed into law by President provide on July 30, 2002. The law is now known as The Sarbane-Oxley Act (SOA). The SOA has 11 titles within the act and numerous sections, pertaining to ethics, accounting, financial reporting, responsibilities of officers, whistleblower protection, and increased deplorable penalties built upon prior securities laws. SOA is the most comprehensive securities canon written since the 1940s. In the early part of the twentieth century companies did not have the sophism and abilities of the modern company in regard to information technology, number of accountants, advisors and analysts. This legislation is a big step toward keeping U.S. law up to discover with modern business practices. The Sarbane-Oxley Act was necessary to protect the U.S. economy and sophisticate investor confidence after the many years of dishonest business practices by ENRON, WORLDCOM, TYCO and oth er companies. The practitioners of shady accounting and greed brought about a washout in stock prices, shook investor confidence and hurt the credibility of every(prenominal) publicly traded companies. A mass bail-out by large stockholders ensued however the fairish sm both investor held on, hoping that the stock would stabilize and believing the reassurances of companies, that claimed they were financially well-off when they were in reality worth less than what they owed. In the end, investors and lower-rung employees of these companies were devastated financially. The underhandedness and greed of these corporate officers had the potential to mold the U.S. economy out of control. The small investors, who are registered voters demanded action. This paper leave canvas the sections of The Sarbane-Oxley Act, highlight their broad implications and discuss compliance. Compliance will cost all publicly traded companies a great deal of money. ?Deloittes Point of View? will be used t o illustrate that compliance, when embraced properly and approached positively can rent rewards for companies in the long term. SECTIONSThe sections that follow are a simplification of the Sarbane-Oxley legislation. at that place are many niches that will require attorneys, accountants and advisors. Keep in theme all prior SEC (securities exchange commission) legislation such as (The Securities Act of 1933, Securiti... ...s Point of View, Sarbanes-Oxley Compliance. (Online). 8 Pages. Retrieved January 16, 2003 from http//www.deloitte.com/dtt/section_node/0%2C2332%2Csid%25253D5601%2C00.htmlPriceWaterhouseCoopers. (2003). Key Elements of Antifraud Programs and Controls, A innocence Paper. 29 Pages (Online). Retrieved January 16, 2003 fromhttp//www.pwcglobal.com/Extweb/NewCoAtWork.nsf/docid/D0D7F79003C6D64485256CF30074D66CSecurities and swop Commission. (2002). Proposed Rule Certification of Disclosure in Companies? every quarter and Annual Reports. 6 Pages (Online). Retrieved Ja nuary 17, 2003 from http//www.sec.gov/rules/proposed/34-46300.htm Securities and Exchange Commission. (2003). The Laws That Govern the Securities Industry. 5 Pages, (Online). Retrieved January 17, 2003 from http//www.sec.gov/about/laws.shtmlsecact1933 Securities and Exchange Commission. (2003). Summary of SEC Actions. 3 Pages, (Online). Retrieved January 17, 2003 from www.sec.gov/news/press/2003-89a.htm Worthen B. (2003, December 1). A Funny Thing Happened on the Way to Compliance. CIO Magazine, Retrieved January 15, 2003 from http//www.cio.com/archive/120103/oxley.html