Module 2 Discussion Topic:
Investigate in detail the provisions of the Sarbanes-Oxley Act of 2002 (SOX) from the Internet, periodicals, or academic journals. Select one of the provisions of the Act, briefly describe it, and indicate why you think (or do not think) financial statements will be more trustworthy if company financial executives implement the provision of SOX you have chosen. In the Title to your initial response posting, please name the provision (for example: Section 404) so your classmates can see which provision you have chosen to analyze. Please provide reference(s) for your response(s).
Website for the Sarbanes-Oxley Act of 2002
You can use Google and enter the Sarbanes Oxley Act of 2002 to get thousands of websites to get you started on your response to this question. Below is a good one that also gives you a great, straight-forward summary of this Act and its importance to the financial markets, as well as a list of the Sections of the Act with links to the details of each Section:
Sarbanes Oxley Act of 2002 Summary
or
www.soxlaw.com/
Introduction of DQ2
The Sarbanes-Oxley Act of 2002 was landmark legislation that tried to protect investors, shareholders, and ultimately employees from firms and their management that issued fraudulent or misleading financial statements to the public. SOX has many Sections, all of which have now generally been fully implemented and tested in business, in the field, and in the courts since that date. Many senior executives found guilty of violating various Sections of SOX have been jailed and are still in jail as a result of their violations of SOX. Ultimately, our free-market principles are compromised and tested when firms issue fraudulent or misleading financial statements which result in either unfair or illegal profits being earned by the management of these firms or hurt investors.
