ACCT Project - Sarbanes Oxley

ACCT Project - Sarbanes Oxley - Contrary to popular belief...

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Contrary to popular belief, Sarbanes-Oxley was no rush to judgment. Not only did Congress begin hearings for the legislation as early as December 2001, but the act that was signed into law a year ago has its core--an accounting oversight board--in legislation introduced in the 1970s, after Penn Central's bankruptcy Sarbanes-Oxley developed the Public Company Accounting Oversight Board, a private, nonprofit corporation, to ensure that financial statements are audited according to independent standards. Sarbanes-Oxley also holds chief executives and chief financial officers directly responsible for the accuracy of financial statements. Ensures top management takes financial statements more seriously What has made the Sarbanes-Oxley so effective is that CEOs and the Boards now have to testify that they endorse all the financial details in each quarterly statement. This huge legal liability has largely prevented egregious financial statements as happened in the Enron and other accounting fraud cases that
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This note was uploaded on 03/12/2012 for the course ACCT 211 taught by Professor Kamlet during the Spring '08 term at Binghamton.

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ACCT Project - Sarbanes Oxley - Contrary to popular belief...

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