Question

We know that the Sarbanes-Oxley Act was created as the result of several high-profile fraud cases. Now that the act is over 10 years old, many think that it needs to be updated to reflect the changing times. From the e-Activity, identify and discuss at least three changes that should be made to the act, indicating why these changes are necessary.

Create an argument supporting three items in the act that you would not change.

Answer 1

Evaluate what changes should be made to both the Sarbanes- Oxley Act of 2002 and other current laws in order to make them more effective in deterring companies from committingcrimes. Sarbanes-Oxley Act of 2002 Section 802 is listed within Title VIII of the act, Corporate and Criminal Fraud Accountability, and pertains to Criminal Penalties for Altering Documents”. In this section it defines imposes penalties of fines and/or up to 20 years imprisonment for altering, destroying, mutilating, concealing, falsifying records, documents or tangible objects with the intent to obstruct, impede or influence a legal investigation. This section also imposes penalties of fines and/or imprisonment up to 10 years on any accountant who knowingly and willfully violates the requirements of maintenance of all audit or review papers for a period of 5 years. Today, the ways that SOX changed public companies, are undeniable. SOX led to greater internal control of financial reporting, and increased expertise and independence among more focused boards, committees and directors. It imposed new reporting, audit, disclosure and ethics requirements, and created internal reporting and whistleblower structures upon which the Dodd=Frank Wall Street Reform and Consumer Protection Act has built.

Note:answer was given as per expert's opinion student can ask for further clarification if needed.