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Write 10 pages thesis on the topic checking corporate fraud with the sarbanes-oxley corporate reform act 2002.
Write 10 pages thesis on the topic checking corporate fraud with the sarbanes-oxley corporate reform act 2002. The front-page headlines around the nation at that time were reading that firms such as Worldcom, Enron, Global Crossing and Arthur Anderson had failed to meet the American expectations of straightforward transparency in financial affairs (Whalen 2003. Spiro 1996). The Sarbanes-Oxley Act specifically empowered the Securities Exchange Commission, IRS, and the Public Company Accounting Oversight Board to handle the problem. It is a different matter altogether that these authorities were placed by the Act in a position to not only oversee financial management practices in the American companies but also to overstep their boundaries to the point where they were almost running the organizations around the nation. Yet, this was a typical move on the part of the Bush administration seeing as the Patriot Act, too, is known as a very intrusive measure to combat ‘evil.’ In the case of the Sarbanes-Oxley Corporate Reform Act of 2002, the regulations punish both the corrupt and the honest executives and accountants. The latter are punished as their roles in the firm have now been transformed and they have had to deal with the discomfort of organizational change. Everyone in the organization is responsible for detecting fraud at present, and the cost to organizations for compliance with the Act is quite high (Longnecker 2004).
To counter fraudulent accounting practices and executives’ self-dealing transactions the dramatic likes of which were discovered in the cases of Enron and Worldcom, the Sarbanes-Oxley Act was an important or perhaps necessary step taken by the government. The substantive corporate governance provisions in the Act were recycled ideas that had been advocated for a long time by corporate governance entrepreneurs. In fact, all successful national law reforms usually involve a recombination of older elements that had been advanced in policy circles for some time. The Sarbanes-Oxley .Corporate Reform Act, in particular, was intended to increase the reliability and accurateness of corporate reporting, accounting, and auditing practices. . .