Sarbanes Oxley Act Article Analysis

SARBANES OXLEY ACT ARTICLE ANALYSISSarbanes-Oxley Act , signed into law by President George Bush on June 30 , 2002 , was crafted in to meliorate securities legislature and to strengthen the requirements of audit checks . The act appe atomic number 18d in retort to a string of corporate scandals and was meant as a answer to these scandalsThe article Private Companies Feel Effects of Sarbanes-Oxley by doubting Thomas Hoffman concentrates on the effect the implementation of the act had on private companies . In essence , the law was meant to address issues of corporate machination at publicly traded companies , but now the private companies are beginning to feel the impact as well . This is authorized in particular with reference to the so-called whistle-blowing provision that requires that employees moldiness be given the means to anonymously notify federal regulators or corporate audit committees of any potential error within their companies (Hoffman , 2003The companies will have to adapt their internal information processing system systems to the need to provide confidential information . In auxiliary , private companies considering incorporation will then have to worthy all the requirements for public companies , including the costly compliance with Section 404 that requires companies to improve their internal controls and to fib their adequacy in an annual report confirmed by auditorsSome private companies have already begun to modify their internal controls in accordance with Sarbanes-Oxley .

Thus , Fred Pauls , corporate records film director at J .R . Simplot Co . in Boise , Idaho , reports that their confederacy last year began indexing its purchase- system so the application program meets Sarbanes-Oxley s record-keeping requirements (Hoffman , 2003 . Besides , the prospect of an acquisition motivates a private smart set to strengthen internal controls to meet the requirements of the acquiring public conjunction , states Jocelyn Arel , a partner in Testa , Hurwitz Thibeault LLP (Hoffman , 2003Hoffman , T (2003 , direful 4 . Private Companies Feel Effects of Sarbanes-Oxley : Financial reportage law could force IT changes even at nonpublic businesses . Computerworld . Retrieved January 14 , 2006 from http /www .computerworld .com /printthis /2003 /0 ,4814 ,83672 ,00 .htmlPAGEPAGE 1SARBANES OXLEY14 January 2006...If you want to get a full essay, order it on our website: Orderessay

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