Private Companies Struggle With The Sarbanes-Oxley Act

The 18th century Scottish writer Samuel Smiles once said, "This strict and sincere person may not be as fast as an unscrupulous and unfaithful person, but success will be more realistic. Or if there is no unfair income, even if it temporarily fails, he must be honest.

"(Zaadz, 2005) Major corporate scandals such as Enron and WorldCom shook the world of business in a powerful way at the turn of the century.

Sarbanes-Oxley Act: After major corporate fraud in enterprises such as Enron, Tyco, WorldCom, the major laws of the Sarbanes-Oxley Act were enacted, accounting, auditing, and corporate laws and regulations were stipulated. Many of the responsible business community oppose the bill, claiming that it is difficult, time-consuming to comply with the rules and still can not achieve the desired result. EPA: Another common goal for some companies is the Environmental Protection Agency. This agency currently regulates waste disposal, greenhouse gas emissions restrictions, pollutants, and other substances that are harmful to land, water and the atmosphere. Companies that apply to these rules are complaining that these restrictions are expensive and sacrifice profits.

Research and discussion of the 2002 Sarbanes-Oxley Act We clarify the main elements and the main objectives of the Sarbanes-Oxley Act of 2002. What are some of the criticisms surrounding the bill? Does this measure have economic impact on the company? Has the Sarbanes-Oxley Act achieved so far? Indirect and Direct Law The preparer of the financial statements has two choices, indirectly and directly when preparing the cash flow statement. Even in F.A.S.B., indirect methods are actually widely used. Indicates the priority of the direct method. Describes the similarities and differences between direct and indirect methods and the advantages of using each method.

From some financial scandals, the Sarbanes-Oxley method has evolved. The bill provides some important and practical provisions for listed companies. According to the 2002 Sarbanes - Oxley Act, there are 11 titles. Public company accounting supervisory committee (PCAOB), auditor independence, corporate responsibility, enhanced financial disclosure, analyst conflicts of interest, committee resources and power, research and reporting, corporate and criminal fraud responsibility, white collar Criminal punishment, income tax return, corporate fraud liability