Sarbanes

Sarbanes

Sarbanes-Oxley Act

Jason Williams
04/26/11
Healthcare Finance and Economics (HA520)

“The Sarbanes-Oxley Act was signed into law on July 30th 2002 by President Bush.” (The Webopedia (2011))   The Act is to regulate the financial reporting for professionals.   “Its purpose is to review legislative audit requirements and to protect investors by improving the accuracy and reliability of corporate disclosures.” (The Webopedia (2011))   “The act covers issues such as establishing a public company accounting oversight board, auditor independence, corporate responsibility and enhanced financial disclosure. (The Webopedia (2011))   “The act was named after Senator Paul Sarbanes and Representative Michael Oxley.”   (The Addison-Hewitt Associates (2006) the act was organized into eleven titles.
“The Sarbanes-Oxley Act created new standards for corporate accountability as well as new penalties for acts of wrongdoing.” (The the Data Governance Institute (2003-2006))   “It changes how corporate boards and executives must interact with each other and with corporate auditors.” (The the Data Governance Institute (2003-2006))   “It removes the defense of “I wasn’t aware of the financial issues” from CEO’s and CFO’s, holding them accountable for the accuracy of financial statements.” (The the Data Governance Institute (2003-2006))   “The Act specifies new financial reporting responsibilities, including adherence to new internal controls and procedures designed to ensure the validity of their financial records” (The the Data Governance Institute (2003-2006) This Act requires financial reports to have an internal control report.   “This is designed to show that not only are the company’s financial data is accurate, but the company has confidence in them because adequate controls are in place to safeguard financial data.”   (The the Data Governance Institute (2003-2006))   “The US Sarbanes-Oxley was passed in the wake of a myriad of corporate scandals” (The the Data Governance...