Sarbanes Oxley Act Essay Example | Topics and Well Written Essays - 1000 words

Sarbanes Oxley Act - Essay Example It is a law for all public that set the standards for all the United States of America’s public companies board, the management and all the public accounting firms. This has set the standards for all who hold management position to give out accurate financial statements and information, while making external auditors more independent. The Act contains 11 titles. Scenario 1 which tries to establish whether a chief financial officer(CFO) or the CEO is liable certify report that contain misrepresentation can be explained by title III of the Sarbanes Oxley Act (SOX).this title contain eight parts and states that those in high ranking of management should be individually responsible for accurate and complete financial statements. The title is specific in that it demand that corporate officers e.g. the CFO, or the CEO to be responsible for accurate and valid financial records (SOX section 302) ( Guy 45).4 Scenario 2 wished to establish whether or not a CFO or CEO is liable for using their respective position to influence an "audit report" of a public corporation. This can be explained by title XI on fraud accountability. It specifies that tampering and fraud of financial records either by overstatement or understatement attracted a penalty. This may lead to an extent of freezing payment which seems either overstated or understated. (SOX section1101)(James 128). Scenario3 wishes to find out whether or not an outside auditing firm must report directly to the "internal auditing committee" of a public corporation.... . Scenario 6 looks at whether or not a public corporation can make loans to managers and executives. This can be explained by title V which has nine sections that shows reporting on any transaction whether it is an off the balance sheet or any financial transaction. This means that they can make loans to the managers but it is a requirement to report on all those transaction that were involved (James 310). The last scenario wishes to tell whether or not a person who conspires with other to engage in fraudulent activities will receive the same punishment as those who actually engage in the fraudulent activity. Title III specifically states that every officer s will take his her individual responsibility for accurate and valid reporting. In case of fraud each officer takes his/her own responsibility and receives his /her own penalty (Guy 103). It is for a fact that Sarbanes Oxley Act is applicable in many activities of the firm. It seeks to set the standards for all who hold management position to give out accurate financial statements and information, while making external auditors more independent. Work cited. Guy Lander ,What is Sarbanes-Oxley? McGraw-Hill, 2003 James Hamilton, Ted Trautmann,Sarbanes, Oxley Manual: A Handbook for the Act and SEC Rules, CCH Incorporated, 2008 Question A Uniform commercial code Uniform commercial code was first enacted in 1952 and aimed at harmonizing sales law in the United States of America. Uniform commercial law was enacted to deal with transactions and contracts. It was created to create uniformity while transacting. It is subdivided into articles but of importance to this question is article 2 of the uniform