SOX the Sarbanes-Oxley Act (SOX) Essay

Open, View, and/or
Download this Document

Total Length: 578 words ( 2 double-spaced pages)

Total Sources: 2

Page 1 of 2

One critical area is with respect to board oversight. The Act mandated that the boards contain enough external members in order to function with relative independence from management. Board members must be sufficiently competent to detect fraud. This means that some board members should have functional competence in the areas in which the company operates while other board members should have significant financial expertise to detect suspicious transactions. Improving governance at the director level is critical to improving governance overall (Guerra, 2004)

Another area where improvement is needed is with respect to auditors and analysts. Public accounting firms had taken the attitude that auditing was an ancillary function to their consulting businesses, creating a conflict of interest. This conflict is to be eliminated, where firms are not to engage in consulting business with the companies that they audit.

Stuck Writing Your "SOX the Sarbanes-Oxley Act (SOX)" Essay?

View All Our Example SOX the Sarbanes-Oxley Act (SOX) Essay

Have A Custom Example Essay Written

Analysts must have firewalls between them and the companies they analyze -- they or their firms must not engage in merchant banking with firms that they also analyze.

Lastly, firms need to address the cultural issues that lead to impropriety. It is not sufficient to simply write codes about governance, it is necessary to have a culture that supports ethical, responsible behavior. This means removing incentives for unethical behavior and emphasizing ethical, responsible behavior in corporate communications. Companies need to ensure that the precursors for such behavior are eliminated, and not leave it to the auditors, directors and executives to uncover impropriety.

Works.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"SOX The Sarbanes-Oxley Act SOX " (2010, April 16) Retrieved May 20, 2025, from
https://www.aceyourpaper.com/essays/sox-sarbanes-oxley-act-sox-1831

Latest MLA Format (8th edition)

Copy Reference
"SOX The Sarbanes-Oxley Act SOX " 16 April 2010. Web.20 May. 2025. <
https://www.aceyourpaper.com/essays/sox-sarbanes-oxley-act-sox-1831>

Latest Chicago Format (16th edition)

Copy Reference
"SOX The Sarbanes-Oxley Act SOX ", 16 April 2010, Accessed.20 May. 2025,
https://www.aceyourpaper.com/essays/sox-sarbanes-oxley-act-sox-1831
   

Open, View, and/or
Download this Document
order custom essay example