Impact of the Sarbanes-Oxley (SOX) Act?
As businesspeople, it is very important to acquire an understanding of the SOX Act. Please research SOX and share what were some of the major changes to the financial reporting environment required by this Act. Please also share whether your own workplace has been impacted by this Act. If you use a website to answer this question, please be sure to summarize your findings and include the hyperlink to your website reference. If you use the textbook, please include the page numbers .
Sample Answer:(Dont use the Same)
Since the adoption of the SOX Act in 2002, corporate officers are legally required to review and sign financial statements (Easton, Wild, Halsey & McAnnaly, p. 1-17). This holds officers personally accountable in the event the information is false or misleading. It also ensures that officers are more informed and involved in the financial aspects of their entities.
Secondly, the SOX act inflicts stricter criminal penalties for those who knowingly alter, destroy, conceal or manipulate financial reports. Penalties can be fines up to $1 million, 10 years jail time, or both (15 U.S. Code § 7241).
Thirdly, the SOX Act provides protection for whistleblowers, or employees who suspect or are aware of fraud and report it. It was a initially whistleblower who brought Enron executives to justice, therefore the SOX Act helps ensure that no executives or other employees do not …discharge, demote, suspend, threaten, harass, or in any other manner discriminate against an employee in the terms and conditions of employment because of [whistleblowing] (18 U.S. Code § 1350).
As for impacts of the SOX Act at St. Ambrose University, Section 42 of the employee handbook encourages employees to report financial wrongdoings and protects them against retaliation.
Financial wrongdoing is defined as suspected violations of law, external regulations or University policy of a financial nature or misuse of University resources (St. Ambrose University Universal Handbook, p. 53).
Additional Source: https://www.law.cornell.edu/wex/sarbanes-oxley_act
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