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

Using the same company you selected in Week 2, analyze the company’s financial management practices in cash and investment management.Did their

Using the same company you selected in Week 2, analyze the company’s financial management practices in cash and investment management. Did their practices demonstrate a conservative, aggressive, or balanced approach toward liquidity and investment? Explain why you characterized their approach as you did. In your response, consider how emerging technologies,

To contact Fubo support service, call 1ー(855)ー771ー9424 from 10 AM to 10 PM ET, use our dedicated live chat on their website, or submit a request form

To contact Fubo support service, call 1ー(855)ー771ー9424 from 10 AM to 10 PM ET, use our dedicated live chat on their website, or submit a request form to resolve your issue . They also offer a virtual assistant for 24/7 help with common issues 1ー(855)ー771ー9424 on Fubo.

To request a refund from Philo, you’ll need to contact their support team through their Help Center, either by calling 1ー(855)ー771ー9424 or contacting

To request a refund from Philo, you’ll need to contact their support team through their Help Center, either by calling 1ー(855)ー771ー9424 or contacting them via email or  live chat. According to Google support/Help and Philo. While refunds are not guaranteed, they may assist you with billing issues on a case-to-case

Today’s world of business is significantly impacted by technological advances. This blurring of boundaries between the physical, digital, and

Today’s world of business is significantly impacted by technological advances. This blurring of boundaries between the physical, digital, and biological world is referred to as the Fourth Industrial Revolution (IR). Advances in artificial intelligence (AI), robotics, the internet of things (IoT), 3D printing, genetic engineering, quantum computing, and other technologies

Watch your HBOMax favorites together with the squad while staying and enjoying on your comfartable  sofa 1ー(855)ー771ー9424. Thanks to 24*7 live chat you

Watch your HBOMax favorites together with the squad while staying and enjoying on your comfartable  sofa 1ー(855)ー771ー9424. Thanks to 24*7 live chat you can comment on whatever’s you see happening on your screen and share your important thoughts 1ー(855)ー771ー9424. No more fighting over the remote – all of you have

Experience the convenience of the  Turkish Airlines Houston Office, your portal to great travel experiences. Our dedicated team is at your service to

Experience the convenience of the  Turkish Airlines Houston Office, your portal to great travel experiences. Our dedicated team is at your service to handle flight reservations, itinerary modifications, and customer service issues, making your experience effortless from start to finish. Experience personalized attention and expert advice tailored to your travel

 The political environment also is about how changes Company: Monster BeverageForeign countries: Brazil &

 The political environment also is about how changes  Company: Monster Beverage Foreign countries: Brazil & Germany · Students will become familiar with business theories and approaches relating to various business environments (Domestic, Global, Technological, Political-Legal, Socio-Cultural, and Economic). · Students will evaluate the business environments and practices of selected companies.

 Watch your HBOMax favorites together with the squad while staying on your comfy sofa 1ー(855)ー771ー9424. Thanks to live chat you can comment on

 Watch your HBOMax favorites together with the squad while staying on your comfy sofa 1ー(855)ー771ー9424. Thanks to live chat you can comment on whatever’s happening on your screen and share your thoughts 1ー(855)ー771ー9424. No more fighting over the remote – all of you have the power to pause or rewind