words sweeping changes used multiple times W r i t i n g
125 words each classmate discussion response
One: The Sarbanes-Oxley Act of 2002 was created to hold companies accountable for their accounting actions and help protector investors. The Sarbanes-Oxley Act of 2002 helped establish regulations and penalties for companies who were committing fraud. The majority of companies that fell under this Act were public trading companies, so the fraud affected many investors and shareholders. I think the stiff penalties and regulations have forced companies to have accountability for poor accounting practices. That’s great for investors who suffer the most significant loss when they do not have integrity or responsible stewardship.
It is essential for large companies and small companies to possess integrity and responsible stewardship, especially with those who make finical decisions. The Sarbanes-Oxley Act of 2002 primarily set the standards in corporate responsibility, accounting regulations, increased criminal punishment, and added new protections (Kenton, 2020). I strongly agree with the prison term for those that don’t practice fair policies. In section 302 of the Act, all senior leaders must certify their financial statements. In section 404, managers and auditors have to establish internal controls. And in section 802 of the Act, there are rules set forth for record-keeping. I can’t think of anything they missed that would further aid in the reduction of financial fraud. And I don’t feel that any of the regulations outlined in the Sarbanes-Oxley Act of 2002 are too harsh are unreasonable.
In conclusion, the financial records of a company are the most important thing about that company. You should trust that if you invest in a company, your investment is being handled by a well-trained professional with integrity and responsible stewardship. People’s wealth and income are of great value and should not be taken lightly.
Kenton, W. (2020, February 4). Sarbanes-Oxley (SOX) Act of 2002. Retrieved from Investopedia:
References Sarbanes Oxley Act(n.d.) Sarbanes Oxley Act An act aimed at protecting investors by making corporate disclosure more accurate. https://corporatefinanceinstitute.com/resources/kn…
Sarbanes Oxley Act(n.d.) Sarbanes Oxley Act An act aimed at protecting investors by making corporate disclosure more accurate. https://corporatefinanceinstitute.com/resources/kn…