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Subject:
Accounting, Finance, SPSS
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Essay
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English (U.S.)
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Topic:
The Sarbanes-Oxley Act: Preventing Fraud
Essay Instructions:
Discussion topic 1:
The Sarbanes-Oxley Act is a product of a series of scandals that took place around the turn of the millennium.
Has Sarbanes-Oxley really done anything to curb fraud?
How does the Sarbanes-Oxley Act affect U.S. companies as they compete globally?
Discussion topic 2:
Research the Internet for examples from the past two years of litigation, censures, and fines involving national public accounting firms, such as fines by regulatory authorities and censures by professional societies.
Make a recommendation as to how regulators and professional societies may deter firms and organizations from making similar violations.
Provide support for your rationale.
Essay Sample Content Preview:
Name
Course
Instructor
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Discussion – Public Accounting
The Sarbanes-Oxley Act enacted in 2002 was a direct result of the increased mistrust in the financial markets in the United States. The Act was therefore aimed at improving financial transparency and corporate governance in institutions, thus preventing fraud. The Act has been crucial in preventing fraud due to the stringent requirements introduced to enhance corporate accountability. More so, the stringent penalties that include criminal charges for offenders and conspirators are also significant deterrents for fraudulent activities. Consequently, the Sarbanes-Oxley Act has had an effect on U. S. companies competing globally due to the increased investor confidence in the market (Chang and Choy). This is because the regulatory framework was enhanced to protect investments, thus increasing the attractiveness of U.S. firms in the global market.
There are several instances where regulatory bodies have fined national public accounting firms in the United States. In 2021, the Securities and Exchange Commission (SEC) charged accounting firm Ernst & Young LLP and its partners approximately $10 million for violating auditor independence rules (U. S. Securities and Exchange Commission). Consequently, to prevent firms and organizations from committing similar violations, regulato...
Course
Instructor
Date
Discussion – Public Accounting
The Sarbanes-Oxley Act enacted in 2002 was a direct result of the increased mistrust in the financial markets in the United States. The Act was therefore aimed at improving financial transparency and corporate governance in institutions, thus preventing fraud. The Act has been crucial in preventing fraud due to the stringent requirements introduced to enhance corporate accountability. More so, the stringent penalties that include criminal charges for offenders and conspirators are also significant deterrents for fraudulent activities. Consequently, the Sarbanes-Oxley Act has had an effect on U. S. companies competing globally due to the increased investor confidence in the market (Chang and Choy). This is because the regulatory framework was enhanced to protect investments, thus increasing the attractiveness of U.S. firms in the global market.
There are several instances where regulatory bodies have fined national public accounting firms in the United States. In 2021, the Securities and Exchange Commission (SEC) charged accounting firm Ernst & Young LLP and its partners approximately $10 million for violating auditor independence rules (U. S. Securities and Exchange Commission). Consequently, to prevent firms and organizations from committing similar violations, regulato...
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