Compliance and the Sarbanes Oxley Act

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Compliance and the Sarbanes Oxley Act
In the context of the world of business, explain what we mean by the term “compliance…

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Compliance and the Sarbanes Oxley Act

Compliance and the Sarbanes Oxley Act

Acct 212 Discussions Week 3 All Students Posts – 62 Pages 

In the context of the world of business, explain what we mean by the term “compliance.” Relating to this, is anyone familiar with the Sarbanes-Oxley (SOX) legislation enacted by Congress in 2002? What was contained in this legislation and what prompted it? Can you provide a specific example of one of the major points of this legislation? Why was it enacted? Separately, does the term “compliance” apply to any other areas of business besides the SOX legislation?

The Sarbanes-Oxley Act of 2002 (SOX) is an act passed by U.S. Congress on July 30, 2002 to protect investors from the possibility of fraudulent accounting activities by corporations. The Sarbanes-Oxley Act of 2002, also known as the Corporate Responsibility Act of 2002, mandated strict reforms to improve financial disclosures from corporations and prevent accounting fraud.
The Act was responsible for sweeping reforms in the following four areas:
-Corporate Responsibility
-Increased Criminal Punishment
-Accounting Regulation
-New Protections
Section 302 of the Sarbanes-Oxley Act of 2002 is a mandate that requires senior management to certify the accuracy of the reported financial statement. The main purpose of SOX is to protect shareholders from fraudulent representations in corporate financial statements. Investors need to know that the financial information they rely on is truthful, and that an independent third party has verified its accuracy…