Essay About Sarbanes-Oxley Act And Public Eye Companies

Sarbanes Oxley
Sarbanes-Oxley Act                                                           Team Assignment                                  360 Superstars – Davies, Jackson, Mills, Williams                                        University of Maryland University College                                                                Dr. Caryn Callahan                                                          AMBA- 630 UMUC                                                               Spring 2015                                                                                                                Executive Summary                                                                Introduction        Finances play a huge role in everyone’s lives.  Whether you do it for work every day, or trying to balance your own income, we all must know how much money is coming in and how much money is going out.  Organizations and individuals may run into a problem when trying to spend more money than they actually have.  Too keep out of the public eye companies and people have known to produce misleading information about their finances.  Because of corporate scandals and fraud the Sarbanes-Oxley Act was passed in 2002 to provide financial security and honesty within corporations.  There are many people who feel relieved that SOX was implemented, but also others who feel as though it is too costly.  The Sarbanes-Oxley Act has a great effect on each financial aspect of corporations today.                                                                                                    Outside Independent Audit Firms                As well as addressing the financial reporting responsibilities of CEOs and CFOs and providing legal remedies for failure to abide by its provisions, the Sarbanes-Oxley Act takes into account the potential for unethical behavior by outside independent audit firms. The main provisions of the Act that impact these firms are: 1) the establishment of a Public Company Accounting Oversight Board (PCAOB); 2) required registration with the PCAOB for all auditors of public companies; 3) regular inspections of firms that conduct public company audits; 4) the creation of Audit Committees; and 5) the adoption of standards around the preparation of audit reports.