Sarbanes Oxley Act And Its Effect On Businesses - 1542 Words

This highly qualified reasersch paper explores published articles that report on results from research conducted on online (Internet) and offline (non-Internet) relationships and their relationship to the Sarbanes-Oxley Act. In 2002 the Sarbanes-Oxley Act passed by the U.S. Congress to protect shareholders and the general public from accounting errors and fraudulent practices in the enterprise, as well as improve the accuracy of corporate disclosures. With the research I have done I believe that with the act being accepted and pass made a big change for all organizations, large and small. Keywords: U.S Congress, Organizations,Research, Sarbanes-Oxley, Accounting the Sarbanes-Oxley Act And its effect on businesses†¦show more content†¦) It was enacted as a reaction to a number of major corporate and accounting scandals, including Enron, and Worldcom. The sections of the bill cover responsibilities of a public corporation’s board of directors, adds criminal penalties for certain misconduct, and required the Securities and Exchange Commission to create regulations to define how public corporations are to comply with the law. As a result of SOX, top management must individually certify the accuracy of financial information. In addition, penalties for fraudulent financial activity are much more severe. Also, SOX increased the oversight role of boards of directors and the independence of the outside auditors who review the accuracy of corporate financial statements.[1] The act was approved by the House by a vote of 423 in favor, 3 opposed, and 8 abstaining and by the Senate with a vote of 99 in favor and 1 abstaining. President George W. Bush signed it into law, stating it included the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt. The era of low standards and false profits is over; no boardroom in America is above or beyond the law.[2] (Kimmel, PhD, CPA, Paul D.; Weygandt, PhD, CPA, Jerry J.; Kieso, PhD, CPA, Donald E., Wikipedia. Retrieved June,23,2015, from http://en.wikipedia.org/wiki/Sarbanes–Oxley_Act.) The purpose of this research paper is to see how the Sorbanes-Oxley Act changed the era of low standards