Managerial Accounting: Creating Value in a Dynamic Business Environment
12th Edition
ISBN: 9781260417074
Author: HILTON, Ronald
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Question
Chapter I, Problem 1RQ
To determine
Explain in brief about the Sarbanes-Oxley Act of 2002.
Expert Solution & Answer
Explanation of Solution
Sarbanes Oxley Act (SOX): Sarbanes Oxley act, 2002 provides accounting guidelines to prevent fraudulent and misrepresentation in accounting practices performed in an organization. This act is enforced to provide protection to their investors or shareholders. This act fulfils corporate responsibility by disclosing facts related to financial reporting.
- Sarbanes-Oxley Act was passed during the year 2002 by the government to address the corporate scandals that occurred in 2001 and 2002.
- It helps in improving the reporting practice of the public companies.
- Sarbanes-Oxley Act is one important provision that restricts the accounting firm from providing audit and management advisory services to the same company.
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Students have asked these similar questions
Describe the Key Provisions of the Sarbanes-Oxley Act.
Discuss the scope and penalties of Sarbanes Oxley Act.
The Sarbanes-Oxley Act requires the following?
Chapter I Solutions
Managerial Accounting: Creating Value in a Dynamic Business Environment
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Similar questions
- Why was the Sarbanes-Oxley Act developed and enacted?arrow_forwardHow does the Dodd Frank bill differ from other bills? Which areas were encompassed in this bill? Do you think this bill was comprehensive and up to mark?arrow_forwardWhat are the key points of the ‘‘Issuer and Management Disclosure’’ of the Sarbanes-Oxley Act?arrow_forward
- will there be an instance where in the government may consider as primary user? please provide example.arrow_forwardIf you were given complete authority in the matter, how would you propose that GAAP should be developed and enforced?arrow_forwardWhat do you see as the future of the Dodd Frank Act?arrow_forward
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