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Chapter 15 Report - sure all the funds are accounted for...

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Emily Greer 11/3/10 Chapter 15 Report The Sarbanes-Oxley Act of 2002 dramatically changed the way corporations did business. The first of the five provisions increased the budget that is used to support the security and exchange commission. The second provision focused on creating a Public Company Accounting Oversight Board. Provision number three changed the membership requirements of the corporate audit committees. The fifth provision required CEO’s to clarify financial statements. The last provision increased the criminal penalties for fraud and false statement. I believe that these provisions will defiantly reduce the security fraud that is going on within the corporations. It makes it difficult for people to get access the funds and it also makes it easier for someone to notice if fraud has taken place. This provisions passed in this act requires many overview of the fund by different people to make
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Unformatted text preview: sure all the funds are accounted for. Before this act was passed many companies just had one person checking the funds which allowed the unethical people perfect access to their company’s money. I think these provisions have really help the security of companies, but I think the system should continuously change. If the securities do not change every so often then many people who are unethical find was around the rules and regulations. I believe that if they change every few years it makes it harder on the people who are trying to committee these frauds. I do believe that the Sarbanes-Oxley Act of 2002 has been very successful and I think it will stay that way until someone comes along and figures out a way to get around all the provisions. When this happens I believe the security of this act will be broken and new regulations will need to be established....
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  • Spring '09
  • U.S. Securities and Exchange Commission, Public Company Accounting Oversight Board, accounting oversight board, audit commit tees

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