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Joshua Singh

Sarbanes-Oxley Act Although many criticisms exist, the Sarbanes Oxley Act is very beneficial and quickly becoming a cornerstone for establishing corporate liability and good corporate governance in the United States and the World today. Joshua Singh. Criticisms of Sarbanes Oxley Act.

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Joshua Singh

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  1. Sarbanes-Oxley ActAlthough many criticisms exist, the Sarbanes Oxley Act is very beneficial and quickly becoming a cornerstone for establishing corporate liability and good corporate governance in the United States and the World today Joshua Singh

  2. Criticisms of Sarbanes Oxley Act Set’s to high a standard for the average small business to comply with. Discourages foreign investment and business growth in the United States (and Canada?) Seen as a violation of rights by allowing the state to influence and interfere with corporate decision making .

  3. What is the Sarbanes Oxley Act? TITLE I--PUBLIC COMPANY ACCOUNTING OVERSIGHT BOARD TITLE II--AUDITOR INDEPENDENCE TITLE TITLE III--CORPORATE RESPONSIBILITY TITLE IV--ENHANCED FINANCIAL DISCLOSURES TITLE V--ANALYST CONFLICTS OF INTEREST TITLE VI--COMMISSION RESOURCES AND AUTHORITY TITLE VII--STUDIES AND REPORTS TITLE VIII--CORPORATE AND CRIMINAL FRAUD ACCOUNTABILITY TITLE IX--WHITE-COLLAR CRIME PENALTY ENHANCEMENTS TITLE X--CORPORATE TAX RETURNS TITLE XI--CORPORATE FRAUD AND ACCOUNTABILITY

  4. What is the purpose of this act? “To protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes.” (S.O.X. Act) “S.O.X. is designed to reassure shareholders that their investments are being protected from scandal and deception.” (Anad, 2007) “Politically, the U.S. government had to stabilize the situation and resore investor confidence. The SOX act was drawn up to entice investors and lenders back into the markets. These dollars are needed to run large public companies.”(Morely, 2005)

  5. Unique aspects of Sarbanes-Oxley Criminal liability. Creation of an accounting oversight board. Demand for ethical behavior as well as ethical compliance. Whistleblower protection.

  6. Effects of Sarbanes Oxley Act On a global scale. Has lead to many new or revised legislation that specifically governs corporate actions. Has raised awareness about the need to sanction and oversee the actions of larger corporations. Has given the judicial system and investors tools to defend or attack the corporate structure. Public support and confidence has risen in the publicly traded corporations.

  7. How does this act specifically effect the Canadian business? Bill 198, Keeping the Promise for a Strong Economy Act (Budget Measures), 2002 .. Clause 26? Business that participate or are set up in the U.S. must also follow these rules. (RBC) May make it more difficult to set up a business? What about a Non- profit organization?

  8. Final thoughts • Is law good enough, or is it only a stepping stone for further regulation? Should we continue to pursue charges against the corporation in the criminal area, or should we stick with civil law? (look at financial crisis today) • What role does technology play in this role? Should we begin to look more to what technology can do? If we do this, we will need to set up laws governing action first. This may be a slow and difficult process.

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