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I would think you could get away with saying that the Arthur Anderson debacle was the result in some part of the removal of Glass-Steagall act, when Clinton he signed GrammLeachBliley Act. But once after that happened..
GW Bush owned the whole pickle.
No GWB made this law after that happened
SarbanesOxley Act
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(Redirected from Sarbanes-Oxley Act)
Sarbanes
Sen. Paul Sarbanes (DMD) and Rep. Michael G. Oxley (ROH-4), the co-sponsors of the SarbanesOxley Act.
Accountancy
Key concepts
Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts · Constant Purchasing Power Accounting · Cost of goods sold · Credit terms · Debits and credits · Double-entry system · Fair value accounting · FIFO & LIFO · GAAP / IFRS · General ledger · Historical cost · Matching principle · Revenue recognition · Trial balance
Fields of accounting
Cost · Financial · Forensic · Fund · Management · Mergers and Acquisitions · Tax
Financial statements
Statement of Financial Position · Statement of cash flows · Statement of changes in equity · Statement of comprehensive income · Notes · MD&A · XBRL
Auditing
Auditor's report · Financial audit · GAAS / ISA · Internal audit · SarbanesOxley Act
Accounting qualifications
CA · CPA · CCA · CGA · CMA
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The SarbanesOxley Act of 2002 (Pub.L. 107-204, 116 Stat. 745, enacted July 30, 2002), also known as the 'Public Company Accounting Reform and Investor Protection Act' (in the Senate) and 'Corporate and Auditing Accountability and Responsibility Act' (in the House) and commonly called SarbanesOxley, Sarbox or SOX, is a United States federal law enacted on July 30, 2002, which set new or enhanced standards for all U.S. public company boards, management and public accounting firms. It is named after sponsors U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH).
The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies collapsed, shook public confidence in the nation's securities markets.
It does not apply to privately held companies. The act contains 11 titles, or sections, ranging from additional corporate board responsibilities to criminal penalties, and requires the Securities and Exchange Commission (SEC) to implement rulings on requirements to comply with the new law. Harvey Pitt, the 26th chairman of the SEC, led the SEC in the adoption of dozens of rules to implement the SarbanesOxley Act. It created a new, quasi-public agency, the Public Company Accounting Oversight Board, or PCAOB, charged with overseeing, regulating, inspecting and disciplining accounting firms in their roles as auditors of public companies. The act also covers issues such as auditor independence, corporate governance, internal control assessment, and enhanced financial disclosure.
The act was approved by the House by a vote of 423 in favor, 3 opposed, and 8 abstaining and by the Senate with a vote of 99 in favor, 1 abstaining. President George W. Bush signed it into law, stating it included "the most far-reaching reforms of American business practices since the time of Franklin D. Roosevelt."[1]
Debate continues over the perceived benefits and costs of SOX. Supporters contend the legislation was necessary and has played a useful role in restoring public confidence in the nation's capital markets by, among other things, strengthening corporate accounting controls. Opponents of the bill claim it has reduced America's international competitive edge against foreign financial service providers, saying SOX has introduced an overly complex regulatory environment into U.S. financial markets.[2] Proponents of the measure say that SOX has been a "godsend" for improving the confidence of fund managers and other investors with regard to the veracity of corporate financial statements.[3]
Contents [hide]
1 Outlines
2 History and context: events contributing to the adoption of SarbanesOxley
2.1 Timeline and passage of SarbanesOxley
3 Analyzing the cost-benefits of SarbanesOxley
3.1 Compliance costs
3.2 Benefits to firms and investors
3.3 Effects on exchange listing choice of non-US companies
4 Implementation of key provisions
4.1 SarbanesOxley Section 302: Disclosure controls
4.2 Sarbanes-Oxley Section 401: Disclosures in periodic reports (Off-balance sheet items)
4.3 SarbanesOxley Section 404: Assessment of internal control
4.4 SarbanesOxley 404 and smaller public companies
4.5 SarbanesOxley Section 802: Criminal penalties for violation of SOX
4.6 SarbanesOxley Section 1107: Criminal penalties for retaliation against whistleblowers
5 Criticism
6 Praise
7 Benefits of Sarbanes Oxley Act on a long term basis
8 Legal challenges
9 Legislative information
10 See also
10.1 Similar laws in other countries
11 References
12 External links
[edit]
And it was enforced..when?
Have any of you ever thought that this law may have had more to do with this crises than anything?
I mean everyone was screaming how could this happen?
yet reporting was spot on
This has been my point
These events started out nice and legal
remained nice and legal
within months of the sub prime going up and the housing market starting to collapse it was over
Securities that where rated A and above went to junk over night
Liberals have no desire to resolve anything, they want to hate
blame, stay mad
This is a simple event that to prevent it is simple
separate wall street and main street when it comes to a mortgage
The deposit banker make his choices based on whats best for his deposit bank and the investment banker make his choices based on whats best for his investment bank