see attachedPlease response to the 2 peers discussions below answer regarding The Sarbanes-Oxley Act of 2002. Please cite 2

see attached

Please response to the 2 peers discussions below answer regarding The Sarbanes-Oxley Act of 2002. Please cite 2 scholarly authors.

1a. The Sarbanes-Oxley Act of 2002 (SOX) was enacted in response to high-profile corporate accounting scandals, such as those involving Enron and WorldCom, which revealed major flaws in financial reporting practices and audit oversight. Among its most impactful provisions is Section 404, which obligates both management and external auditors to assess and disclose the effectiveness of a company’s internal controls. Although implementation can be expensive—especially for smaller companies—this requirement has played a key role in enhancing transparency and minimizing the risk of fraud (Williams, Bettner, & Smith, 2023). In addition, Section 302 holds CEOs and CFOs personally responsible for verifying the accuracy of financial statements, promoting greater executive accountability.

Another major improvement introduced by SOX was the establishment of the Public Company Accounting Oversight Board (PCAOB), which ended the self-regulation of the auditing industry. The PCAOB now oversees audit firms and enforces auditing standards, thereby restoring credibility to the financial reporting process (Williams et al., 2023). The Act also strengthened the role of audit committees and implemented whistleblower protections (Section 806), encouraging early detection of fraudulent activity and promoting a more ethical corporate environment.

Despite its strengths, SOX could be improved by scaling certain provisions—like Section 404—to reduce the burden on smaller companies without compromising control quality. It could also benefit from expanding into areas like mandatory ethics training and non-financial disclosures, such as ESG reporting, to align with modern investor expectations. While some argue that SOX may over-regulate certain aspects of the profession, its role in restoring public trust and reinforcing accountability in financial reporting remains a significant achievement (Williams et al., 2023).

Reference:

Williams, J., Bettner, M., & Smith, K. (2023). Financial & Managerial Accounting (eBook with Connect access). New York, NY: McGraw-Hill Education.

1b. The Sarbanes-Oxley Act of 2002 (SOX) was enacted to restore confidence in financial reporting after major corporate scandals like Enron and WorldCom revealed serious weaknesses in internal controls and ethical oversight. One of the most impactful provisions was the creation of the Public Company Accounting Oversight Board (PCAOB), which placed independent oversight on the auditing profession and helped rebuild trust in financial reporting. Another key provision is Section 302, which requires CEOs and CFOs to certify the accuracy of financial statements. This moved accountability to the top and discouraged executives from claiming ignorance when fraud occurs under their leadership (U.S. Government Publishing Office, 2002).

From the standpoint of responsible stewardship, SOX could have gone further by emphasizing continuous ethical training for financial executives and auditors. It might have also required companies to adopt stronger whistleblower protections with enforcement mechanisms that encouraged employees to report wrongdoing without fear of retaliation. These additions could further embed a culture of integrity in the profession.

One of the most debated provisions is Section 404, which mandates documentation and testing of internal controls. While important, its implementation has proven costly and burdensome for smaller firms. According to Williams, Bettner, and Smith, internal controls are essential for reliable financial reporting, but there must be a balance between effectiveness and excessive compliance costs. SOX significantly improved transparency and accountability, but like any regulation, there’s room for adjustment as the business environment evolves.

References

U.S. Government Publishing Office. (2002). Sarbanes-Oxley Act of 2002, Public Law 107–204, 116 Stat. 745. 

Williams, J. R., Bettner, M. S., & Smith, K. R. (2022). Financial & managerial accounting: The basis for business decisions (20th ed.). McGraw-Hill Education.

Share This Post

Email
WhatsApp
Facebook
Twitter
LinkedIn
Pinterest
Reddit

Order a Similar Paper and get 15% Discount on your First Order

Related Questions

Improving Business PerformanceWeek 2 DiscussionColleagues 1 Lyndsay

Improving Business Performance Week 2 Discussion Colleagues 1 Lyndsay Camaroto Hello, The organization I chose is the one I work at as well, Even though for me I have had great experiences as an employee and have really grown in my career. From a Moral standpoint, there are instances where

PIQ#3Discusion 3 Note: followed two responses  Your initial response must be a minimum of 300 words. Healthcare organizations use various Key

PIQ#3Discusion 3 Note: followed two responses  Your initial response must be a minimum of 300 words. Healthcare organizations use various Key Performance Indicators (KPIs) and Quality Metrics to measure performance. This activity allows you to practice researching and using data to inform quality improvement decisions. For this discussion board: 1. Select one

see attachedMBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRICName:Date Completed:Students will complete the assignment with attention to the

see attached MBA 560 – FINANCIAL STATEMENT ANALYSIS RUBRIC Name: Date Completed: Students will complete the assignment with attention to the criteria below. GRADE: Exceptional Proficient Basic Insufficient /Missing/Late Company Selection Minus 10 points if late Financial Statements Minus 10 points if late Company/Industry Section Horizontal Analysis 3 accounts/line items

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation

Create an 8–12-slide PowerPoint presentation that summarizes the AFI Framework and the results of the internal and external analyses. Your presentation must also include a SWOT matrix for the company and your recommendations for strategies to move the company forward that align with organizational structure and governance, and reflect ethical