Sarbanes

In: Business and Management

Submitted By Bigsmooth1
Words 1109
Pages 5
Sarbanes-Oxley Act of 2002
Michael Cooks
ACC/561
August 18, 2014
Janice Mereba

Sarbanes-Oxley Act of 2002
This legislation acquired its name after Senator Paul Sarbanes and Representative Michael Oxley. They were the two main architects to bring this law into existence. This legislation came to into realization in 2002 it brought major changes to financial regulations and corporate governance. The Sarbanes-Oxley Act (SOX) is organized into eleven titles. The purpose of this literature is to describe the main aspects of the regulatory environment which will protect the public from fraud within corporations. To ensure honesty and ethical conduct, the Security Exchange Commission adopted rules that require a company to disclose yearly whether the company has adopted a code of ethics for the company’s top executives and senior financial officers. This literature will also discuss financial fraud and the prevention of financial fraud.
Provision of Sarbanes-Oxley
Financial Fraud Financial fraud is a deliberate act of dishonesty involving financial transactions for purpose of personal gain. Fraud is a violation of law, as well as a civil violation. Financial fraud is a condition in which the ethical and legal management of financial resources does not take place. In most countries around the world, this kind of fraud transpires as a result of deliberate decisions and activities of individuals who handle money and other assets on behalf of employers or clients. The result of fraudulent handling of money, and other financial resources, will lead to significant losses for a company, or an investor. Some financial losses are hidden in accounting records, which allows the fraud to continue until money and other assets are no longer under control of the company. This type of fraud can be done by anyone who has access to corporate resources. Misappropriation of…...

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