To: Professor Holborn From: Julion Price Re: Does the destruction of grouper that is more than 20 inches violate the Sarbanes-Oxley Act? Date: December 3, 2014 FACTS In 2007, defendant John L. Yates set out with his crew to go fishing in the Gulf of Mexico. A few days later, Officer Jones boarded their ship and examined the fish they were catching. He noticed that 72 of the fish were smaller than 20 inches.…
1. Why did Congress enact the Sarbanes-Oxley Act? What are the major provisions and benefits of the Act? Congress enacted the Sarbanes-Oxley Act in order to protect investors. This was done by improving the accuracy and reliability of corporate disclosures made by in accordance with the securities laws.…
SOX has its pro’s and con’s. Some claimed that it imposes tremendous new efforts and costs on public companies. On the contrary, others find it as more advantageous. However, if pros outweigh the cons that a company can get, then perhaps it is worth to comply the said law. As discussed in this article, SOX had led to greater internal control of financial reporting, and had increased the expertise and independence among more-focused executives in the organizations.…
Trinity Industries is a successful and properly operating company who never had to restate their earning from previous years. However, Don Collum VP of Trinity Industries, had described the company in 2003 as a candidate for material weakness as defined by Sarbanes-Oxley Act (SOX). The company was deficient in internal control process in the area of documentation and evidence that controls had been performed which could lead to material weakness. Sarbanes-Oxley (SOX) was created in 2002 because of all the accounting fraud that were being reported from publicly held companies. SOX job is to protect investors by preventing financial statement fraud, strengthen internal control, and punishing executives for fraud.…
Discussion One The court decided that the members may be removed on the Securities and Exchange Commission will unlike how the Sarbanes-Oxley Act. The act also gives SEC power to remove members on a good cause only. The court however termed this as violation of the constitution. The court decision that the SEC may remove members at their own will violate the validity of the members.…
Several different guidelines have been put in place to insure that financial reporting is done correctly and accurately. International Financial Reporting Standards or IFRS guidelines where adopted to insure that all companies gather and disclose their information in the same manner. In response to the Enron bankruptcy in late 2001 Sarbanes Oxley Act (SOX) was enacted. SOX reformed; the auditing and accounting procedure which included internal controls and checks and balances, brought into focus oversight responsibility of corporate director and officers making it mandatory to disclose bonuses and special considerations, addressed conflicts of interest and required the chief executives to certify tax documents and financial statements. Where SOX created standard checks and balances with strong auditing/accounting procedures as well as made penalties for fraudulent activates the SEC required disclosure obligations.…
In 1992, while the COSO model was put in place, its real claim to fame came from the subsequent release of the Sarbanes-Oxley Act of 2004. COSO became the most widely used control framework used in managements’ assessment of the internal control environment during this time. However, that is not the model’s sole purpose, as the COSO model is relevant to all companies and institutions when establishing a concrete internal control…
In most states, the law assumes that private sector workers are hired "at-will. The employment-at-will doctrine provides that mutually the boss and the employee can end the service relationship at any time minus notification or cause. Such means the manager has the mandate to dismiss the employee any time for any reason or no reason at all or a bad motive, provided the reason is not unlawful - even if one’s performance has been exceptional (Muhl, 2001). On the other hand, an employee can resign from a job for any reason any time. He or she cannot be forced to work for the boss.…
Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards? The Gramm-Leach Bliley Act, which refers to all financial institutions to explain to theis clients all information related to their accounts and keep private information of their customers, the financial institution is also forced to give out customer’s privacy notices to explain their information-sharing practices.…
Different governments across the world enact different acts to different business and investors in order to help them in curbing specific challenges facing various business. The provisions of this acts apply in both public and private companies and overs the major responsibilities that are expected to be carried out in order to ensure this provisions of the act are followed. In the following discussion we are going to look at Sarbanes-Oxley Act which was a United States federal law. Question One The main reason for the emergence of this Act was the occurrence of scandals that affected very big companies in the United States.…
It allowed for large businesses that should have been…
In 2002, the Sarbanes-Oxley (SOX) Act was passed by congress and signed into law by President George W. Bush. SOX was written as a response to several major accounting scandals that occurred at large companies (including Enron, WorldCom, and Tyco) in the early 2000’s. These scandals forced capital providers and the general public to question the judgement of public accounting firms as well as at the overall reliability of the financial reporting and audit process. The requirements included in SOX were designed to improve audit quality, increase the reliability of financial reporting, bolster corporate governance, and re-establish public and investor confidence in the financial reporting process. Some of the most impactful aspects of the Act…
This caused many corporations to reduce the benefit level previously enjoyed by their employees. This greatly lowered America's standard…
Ian D Johnson Jb Henriksen Accounting 2600 11/1/17 Case Presentation: Enron Scandal Before the scandal that Enron is widely known for today, they were an up and coming American energy company led by CEO Kenneth Lay. In 1985, Lay helped to merge two natural gas companies known as Houston Natural gas and InterNorth to form Enron. Soon after, Congress approved legislation that deregulated the sale of natural gas, allowing companies to use the free market to sell energy. The company became a national middle man for the electricity for the newly deregulated states. This allowed Enron to sell energy at higher prices, increasing its revenue.…
Financial Statement Fraud Company financial statements provides information that is utilized by investors to evaluate the conduct of managers and to compose economic arrangements (Chinniah, 2015, p. 1). The consumers of the financial statement may consider the financial information received as dependable and appropriate for its function (p. 1). Chinniah indicates accounting standards and regulations have been put in place to try to certify the financial information provided is consistent with these standards, regulations, and is reliable and dependable for its consumers (p. 1). Nevertheless, as the world has seen in the past, employees, managers, or even stockholders could intentionally misrepresent the financial statements and change the…