Running head: SARBANES-OXLEY-ACT1Sarbanes-Oxley-ActInstitutionNameDateSARBANES-OXLEY-ACT2`IntroductionThe Sarbanes-Oxley-Act was hurriedly passed by the United States Congress in 2002 witha view to improve reliability in financial reporting, restore confidence among investors and combatfraud. However, the Act became contracting in some of its sections with the management andaccountants finding it difficult to agree on the changes that it proposed (Fletcher and Plette, 2008).How Sarbanes-Oxley Act has affected corporations, accounting firms, and investorsThe management in most corporations were surprised on the proposed changes that subjectthem to the burdens of compliance just as other staff who acted with dishonest or negligence. Thenew requirements which gives the management the responsibility of maintaining sound andreliable internal-control structure for the purpose of reporting and assessing the effectiveness ofthe controls is controversial. Instead, it gives the accountants the responsibility to verify how soundare the managements reports and assessments are with regard to the entire financial controlsestablished (Fletcher and Plette, 2008).The issue of the costs that will be incurred for the management to adhere to the proposedrequirements is a concern. More fees will be paid to accountants in most corporations and thus themanagement feels that this will increase the administration costs. However, the accounts have theview that the r ...
To Order an Original Plagiarism Free Paper on the Same Topic Click Here
Other samples, services and questions:
When you use PaperHelp, you save one valuable — TIME
You can spend it for more important things than paper writing.
