Your CEO read a recent report on the importance of the SOX Act, but he acknowledged that he does not...

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Your CEO read a recent report on the importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it has helped the industry.

Describe at least 3 main reasons that you think prompted the U.S. Congress to pass the SOX Act.
- Examine each of the following areas:
  - Governance
  - Auditor independence
  - Disclosure practices
  - Regulation of public accounting firms
- Dotwo things for each of these areas:
  - Explain at least 1 provision in the SOX Act to provide expansive regulation to address what was generally seen as systematic failures in each area.

State whether or not you agree that the new provisions dealt with the issues that you think prompted the U.S. Congress to enact the SOX Act, and explain your rationale for each area.

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ACCT450-1203B-01 Business and Professional Ethics for AccountantsAssignment Name:Unit 3 Discussion BoardDeliverable Length:400–500 wordsDetails:Your CEO read a recent report on the importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it has helped the industry. Describe at least 3 main reasons that you think prompted the U.S. Congress to pass the SOX Act. Examine each of the following areas: Governance Auditor independence Disclosure practices Regulation of public accounting firms Do two things for each of these areas: Explain at least 1 provision in the SOX Act to provide expansive regulation to address what was generally seen as systematic failures in each area. State whether or not you agree that the new provisions dealt with the issues that you think prompted the U.S. Congress to enact the SOX Act, and explain your rationale for each area.The following grading criteria will apply to this assignment: Grading Criteria40%Describe at least 3 main reasons that you think prompted the U.S. Congress to pass the SOX Act.20%Explain at least 1 provision in the SOX Act to provide expansive regulation to address what was generally seen as systematic failures in each area.20%State whether or not you agree that the new provisions dealt with the issues that you think prompted the U.S. Congress to enact the SOX Act, and explain your rationale for each area.20%Post a response to the Discussion Board, and comment on other postings. Objective:? Develop critical skills by analyzing ethical and legal issues and problems, recognizing and assessing such issues and recommending specific actions to implement your analyses ? Improve oral and written communication skills through class discussions, cases analyses, formal and informal presentations, and group and written assignments

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David · Accepted Answer

AUDIT

  
 
12 
AUDIT 
SOX 
NAME:
The Sarbanes-Oxley Act, passed by the United States Congress in July 2002, is applicable to all publicly 
registered companies under SEC’s jurisdiction (Securities and Exchange Commission). The SEC is needed to 
implement the rulings so that the provisions of the SOX Act can be implemented. A Public Company 
Accounting Oversight Board (PCAOB) has been set up by the SEC which regulates, oversees and inspects the 
accounting firms in their roles as auditors of the public companies. The main motive for its creation was to 
improve the statutory reporting system for public companies in order to protect the interests of the investors, 
and also to restore the investor confidence, following the internal control breakdowns which brought higher 
authorities including audit committees, independent auditors and the executives under scrutiny. Various 
significant issues have been covered by this Act which comprises auditor independence, corporate governance, 
and internal control assessment and improved financial disclosures. Few of the many companies weren’t doing 
enough to manage the books whereas,

Your CEO read a recent report on the importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it...

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