The Cost of Complying with Sarbanes-Oxley Act Section 404 Research Paper

The Cost of Complying with Sarbanes-Oxley Act Section 404 - Research Paper Example â€Å"Sarbanes-Oxley Act†, otherwise known as â€Å"SOX†, is the America’s federal law which sets latest or improved standards for all U.S.A based management and public accounting firms. (Coffee, 2006). In 2002, SOX was introduced in retort to frequent occurrence of major accounting and corporate scandals, including scandals such as Tyco International and Enron. (Coffee, 2006). The main purpose of the â€Å"Sarbanes-Oxley Act† is to regain the confidence in the capital market by enforcing mandatory standards and rules for companies. The scandal involving Enron Corporation was one of the main drivers behind the enactment of Sarbanes-Oxley Act. CEO, Kenneth L. Lay, was responsible for hiding billions of dollars in debt from failed deals and projects. â€Å"Nearly $11 billion were lost by Investors when stock quotes of Enron, which remained at the top of $90 per stock during the middle of 2000, plunged to less than $1 at the close of November 2001.† (Benston, 2006). In December 2001, Enron filed for bankruptcy and Lay was found to be involved in one of the biggest accounting fraud crimes in U.S. history. As a result of scandals like Enron and the public bankruptcy of such well-recognized businesses, US Congress passed the â€Å"Sarbanes-Oxley Act of 2002.† (Coffee, 2006). This bill made it mandatory for all public companies to have internal financial auditing controls and an external auditor. Sarbanes-Oxley Act amplified consequences for destructing, changing, or cooking up accounting records during investigations conducted by Federal agencies or for trying to deceive stockholders. The accountability of auditing firms has been increased by SOX so as to make them to remain unprejudiced and autonomous of their clients. (Coffee, 2006). Sarbanes-Oxley Act demands that the â€Å"Securities and Exchange Commission (SEC)† to put into practice rulings on needs to adhere

Paper reflection Essay Example | Topics and Well Written Essays - 500 words

Paper reflection - Essay Example The head of our tour group was called Paul Franklin. Paul Franklin was a good leader, and he was very eager and keen to satisfy our various needs. For instance, if one of us was interested in asking or seeking a clarification of a particular question, Paul Franklin will ensure that the nurse in charge of our tour answers the particular question. For instance, most of us had questions concerning the technologies and equipments found at the BMET workshop. One of the most pressing questions that we managed to ask is how the hospital is using new biomedical technologies for purposes of surgery. The official in charge of the hospital of BMET workshop was reluctant to tell us, this is because he did not have a ready answer at them. But Paul Franklin pressed him up, until the official gave an answer, even though it was not convincing enough. Each and every one of us was satisfied by the leadership and services of Paul Franklin. The members of this department had uniforms, and this was for purposes of distinguishing them from members of other departments. The color of their uniforms was a blue polo shirt, with bage pants. In my own opinion, the color and the design of their uniform were attractive. The blue color matched with the purposes of the workshop. This is because they were not dealing with patients, but machines that help in the provision of medical services. As such, the white color which is normally associated with doctors and nurses was not appropriate. The BMET workshop is at the basement of the hospital, and it occupies a large space area, that makes it possible to safely store the machines that are used for providing medical and research services. The employers of the department and junior members of this department had a very cordial working relationship. Their relationship is based on trust, understanding, and collaboration. This makes the employees to be motivated, and hence efficient in the manner in which they conduct their