Sarbanes-oxley

was introduced in 2002 as a result of corporate scandals which involve millions . This provides security from future scandals The law has 11 major maintenance (Linsely 2003 . A Public Accounting Board was created in to make believe the Securities Exchange Commission in auditing . No longer ar non auditing services able to be hired to perform league audits . This is to ensure that the responsibility of the audit remain within these companies . The stick in auditor may not serve a roar beyond five years . Management may not monitor the auditing commissioning . These individuals ar required to report to the auditing unwrap panel . Newly , the members of the auditing board must(prenominal) not be connected or receive any(prenominal) other funds from the high society for any other service in which they are auditing . The auditing committee monitors the auditors instead of management . Most significantly , company chief executive officer s and CFO s are being held accountable for their firms pecuniary secernatements . They are required to state these monetary records and explain them . Additionally , escape of compliance in describe for come cost these companies to birth back any money that they received from the statements that were inaccurately account . This leaves companies in a situation where they will be creditworthy for their own financial records . If not , they will lose great(p) . Officers cannot make trades of stock during a black out finale . Any off balancing must be report and explained . Additionally , management must provide a break down analysis and argue the potential causes . Lastly , the annual reporting process straightway includes analysis on how effective their infixed controls are . These eleven eatable simplistically hold companies acco untable for their financial actions . It req! uires them to have a all-embracing knowledge of what is going on with their company financially . It excessively requires an explanation of their financial consideration . This law requires compliance by corporations . Best of all , the penalty will affect the directors and managers of these corporations this instant , which is assurance of accuracy When companies will pay for their own deceptions , chances are they will make an sweat to complyReferencesLinsley , Colin (2003 . Auditing , Risk Management and a Post World . palingenesis of Business , pp . 21-25...If you want to get a full essay, distinguish it on our website: OrderEssay.net

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