![]() ![]() ![]() These issues will be discussed later in this paper. ![]() In addition, SOX prescribes more rigorous and formal corporate controls over the finances of the company that would have discouraged misbehavior. Had the standards mandated by SOX been in place before the ethical lapses of Enron, WorldCom and Charter Communications, the attorneys, accountants, and management purportedly serving the shareholders of those firms would have been less likely to have engaged in their misdeeds because they would have faced the severe penalties mandated by SOX. The Act closes with a set of draconian punishments for those who violate its provisions, including prison terms and fines of up to $25 million. The act prescribes auditor behavior, analyst behavior, corporate employee and officer behavior, and establishes rules to follow and an oversight board for monitoring financial statements. As passed by Congress, SOX consists of 68 sections spread over 66 pages of small type. ![]()
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