The Sarbanes-Oxley Act

Today there are so many organizations using SOX (Sarbanes - Oxley Act) to protect companies and their financial records. The Sarbanes-Oxley method was launched in 2002 to protect the organization. This has a major impact on accounting and records management. For Enron, they passed a bill to better manage their company data for listed companies. "Named after Senator Paul Sarbens and nominated for Michael Oxley, they also set some deadlines for compliance (SOX Act).

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.

In order to understand the importance of the Sarbanes-Oxley method, it is very important to understand the behavior itself. From my reading, the Sarbanes-Oxley Act seems to have passed through to regain the public's confidence in the financial reporting of listed companies. Three Affected Areas - Strengthening internal controls, preventing fraud, and improving the accountability of the Audit Committee. This means a new role of certified public accountants. They are responsible for leading many new rules and regulations through their company. With this role they

Compliance with the Sarbanes-Oxley Act or socks is another element of the internal control process. The Sarbanes-Oxley Act emphasizes the importance of listed companies to maintain internal control over financial reporting. The law requires listed companies to include detailed information on their internal controls in their annual reports. It is a good thing for investors and helps to prove the integrity and management of the company's financial data. "http://smallbusiness.chron.com/purpose-internal-controls-company-12116.html

There is nothing to deny the influence of the 2002 Sarbanes-Oxley Act. The Sarbanes-Oxley Act was developed for corporate accounting scandals in companies such as Enron, Tyco, WorldCom. The purpose of the Sarbanes-Oxley Act is to strengthen the oversight of accounting practices of listed companies, so that investors will not be affected by other Enron, Tyco, WorldCom.