Benefits and Demerits of Sarbanes Oxley Act Task Discussion

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Business Finance

Description

Prompt: Which provisions of the Sarbanes-Oxley Act do you think are beneficial,
and which do you think are not?
o Requirements: Please clearly define the Sarbanes-Oxley Act within your
response. Please also explain and support your argument using the text and at
least one journal article.

Text: Wild, J. J., & Shaw, K. W. (2019). Financial & managerial accounting: information for
decisions (8th ed.). McGraw-Hill Education. ISBN: 978-1260247855
or
Mishkin, F. (2019). The economics of money, banking, and financial mark ets (5th ed.). Pearson.
ISBN: 978-0134734200

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Explanation & Answer

Please view explanation and answer below.

1

Benefits and Demerits of Sarbanes-Oxley Act Task

Student Name
Name of University
Benefits and Demerits of Sarbanes-Oxley Act Task
Professor Name
February 2022

2
Introduction
The Sarbanes-Oxley was enacted in July 2002 with the main objective being the
restoration of public confidence in corporate finance. Investors had lost money as a result of
gaps in corporate finances which were not reliable and could not reflect the true and fair
view. Before the law into place, fraudulent activities characterized public entities that lacked
accountability. The regulation was introduced to streamline operations by promoting
accountability. It was also noted that there was an introduction of government oversight into
public finance accounting (Jahmani & Dowling, 2008).
Discussion
The Act stipulates the accounting standards that need to be adhered to. This has
promoted accountability since the workforce is expected to be responsible for any action.
This means that the firms will strive towards keeping accurate records in line wit...

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