Accounting Report

Enhanced Standards
Sarbanes-Oxley Act o

The Sarbanes-Oxley Act of 2002 (also known as SOX) was created by and by the accounting scandals of Enron and WorldCom. Enron was a gas pipeline corporation which overdraw profits by modifying balance sheets to depict more tender outcomes that were not true. WorldCom was the Nations second largest telecommunication keep comp whatsoevers which overstated its earnings for 2001 and 2002 (Lyke & Jickling, 2002, p. 1). After these scandals unfolded the SOX act as was a way to reassure investors that there money was safe.
hit the books the new or enhanced standards for all U.S. public company boards, management, and public accounting firms that the SOX required.
There atomic number 18 five sections of SOX that are particularly relevant to rectifying these scandals. The first is section 302 which says that all fiscal reports should meet certain certifications:
* Be reviewed by the signing officers
* Everything in the report is true and nothing is misleading
* The financial statements and randomness usher the financial condition respectfully
* The signing officer is responsible for native controls and has reviewed these interior controls within the last 90 days and describe the findings.




* List all deficiencies in the internal controls and information of any fraud that involves employees who are involved with the internal controls.
* A crucial change in internal controls that could have a cast out impact on internal controls.
This section provides adequate information that helps eliminate any fraud and any misrepresentation of documents. as well by having the signing officers signoff on documents if any fraud is afterward detected it narrows down the list of possible culprits. Having controls reviewed every 90 days I believe helps catch fraudulent documents because the internal controls are being kept up with routinely (Sox, 2003.).
component 401 requires that all financial statements be accurate and does not verify any...If you want to get a full essay, order it on our website: Ordercustompaper.com



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