... Sarbanes-Oxley Act of 2002 Analysis The American government has taken significant measures to protect the public from fraud with-in corporations. Many federal laws have been enacted, regulatory bodies created and empowered to monitor and enforce those laws. The Sarbanes-Oxley Act, (SOX), of 2002 was an attempt to address several violations to the public trust from corporations that continued to occur despite the previous attempts to govern corporate responsibility to the public. This act specifically tried to reduce unethical corporate behavior and increase public confidence in the financial reporting of corporations (Kimmel, Weygandt, & Kieso, 2011). This paper will address if the requirements of SOX will be enough to prevent future fraud in the corporate environment. Regulatory Environment Several laws and regulations have been developed to attempt to control business practices. Corporations must follow rules that were established to protect the public from fraud such as fair practice laws, and regulatory agencies must ensure compliance with these long-standing regulations. The U.S. Securities and Exchange Commission, (SEC), “was developed to help protect investors, maintain fair, orderly, and efficient markets, and facilitate capital information” (U.S. Securities and Exchange Commission, 2015). The SEC was created in 1934 in response to the loss of public confidence in financial markets after the stock market crash of 1929 and the years following the Great Depression...
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...Research Paper Target Security Breach Abstract In late 2013 Target Corporation’s network encountered a security breach in which millions of credit cards and customer personal information was stolen by malware that was installed onto their network. This information was to be sold on the black market to others for their illegal use. Target Corporation was indeed made aware that there was some peculiar activity within the network before the information was stolen. Their million dollar malware software, monitored by FireEye, picked up on the attack several days before any information was removed from the Target Corporation servers. Target Corporation could have easily prevented the majority of the attack and reduced if not eliminated the amount of credit cards and personal information that was stolen. The fact that Target Corporation was warned of the initial breach, as well as an additional breach, and did not respond for two weeks is unfathomable and unethical. The Target Corporation has a duty to secure any and all credit card and personal information that they collect from their customers. I believe that in this case Target Corporation did not act accordingly and should be held liable. Target Corporations lack of response and inability to take action goes against all ethics and how the situation should have been handled. Target Security Breach In mid 2013 Target Corporation hired a security firm, FireEye, to install a malware...
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...never want to put a growing corporation into further debt by taking out loans. Plus the bank will probably hold more of the share in the company. Also 4 billion dollar is a substantial amount of money having to pay back and could put stress on the organization if any financial situations ever aroused. Taking out this loan will have more people accountable for the company’s wealth. The only thing positive about doing this is that Merit is probably guaranteed to receive the money that they are asking. The biggest drawback is creating debt with multiple debtors. Public corporations are capable of raising capital from an IPO, as employees or individuals buy shares in the company, since public corporations are publicly listed on a stock exchange. This is the most significant advantage of a public corporation. In addition to the ease of raising capital, public companies may issue their securities as compensation for those that provide services to the company, such as their directors, officers and employees. While private companies may also issue their securities as compensation for services, the recipient of those securities often have difficulty selling those securities on the open market. Securities from a public company typically have an established fair market value at any given time as determined by the price the security is sold for on the stock exchange where the security is traded. Going public will result in increased capital for the issuer. A public offering places a value on...
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...environment which will protect the public from fraud within corporations. The author will pay special attention to the Sox requirement; along with evaluating whether Sox will be effective in avoiding future frauds. Regulatory environment consist of several laws and regulations that has been developed by federal, state, and local governments in order to limit control over business practices. The regulatory environment plays an important role in the positive operation of the financial sector and in the efficient management and integration of capital flow and domestic savings. “The value of the claims of financial institutions on borrowers is dependent upon the certainty of legal rights, coupled with the predictability and speed of their fair and impartial enforcement. Legal and regulatory frameworks that empower the regulator and govern the conduct of market participants form the cornerstone of the orderly operation and development of the financial sector” (Making Finance Work for Africa, 2012). Regulatory compliance has always been a part of doing business. In almost all industry there are a variety of governments and industry regulations that they company must follow in the way that they conduct their business and the penalties of not following the regulations are clearly defined within the company (Doculabs White Papers, 2012). There are many regulations that has been around for a long period of time that were developed to help protect the public from fraud such as; state filing...
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...Investors provide enough funding for corporations to make quality goods and services that are highly valued by costumers and enables growth of the corporation. So managers’ primary goal is to generate enough cash to distribute compensation to investors. Understanding corporate finance allows managers to make monetary decisions that achieve the goal of adding value for investors and thus contribute to a company’s competitiveness and profitability in long run. (b) Organizational Forms There are three types of organizational forms for companies to choose based on different expected speed of growth and the amount of owners. The easiest way to start a business is to begin as a proprietorship, which is owned by one person. It subjects to the minimum amount of government regulations and tax liability. However, the life proprietorship is limited to the life of owner. The owner is subject to unlimited liability. Also, founder is hard to raise capital for a proprietorship to meet growth requirements. If a company has two or more owners, it forms a partnership. Owners of partnership companies are also liable for all the debt. However, limited partnership allows limited owner liable to the amount he invested. Partnership is subject to less regulation and tax but harder to raise capital than corporation. Corporation is the only legal entity that is separated from owners and managers. Even though it is complicated to form a corporation, and corporation is subject to double taxation, but...
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...Critical Analysis of a News Release MKT/438 Public Relations September 4, 2003 In 1975 two young men Bill Gates and Paul Allen with dreams of bringing computers to life, and inspired by a Popular Electronics Magazine article, developed a software application that made the power of personal computers (PCS) useful and accessible to everyone. They developed the first programming language for PCS and begin an extraordinary, history making journey that led to the creation of the world’s largest and most profitable software company, Microsoft Corporation. (Microsoft 2003). In part due to the nature of the products offered (operating systems and software that is constantly evolving and being updated), and by being the world’s largest software manufacturer, Microsoft has the need to regularly communicate to its internal and external publics on a constant basis. Microsoft Corporation utilizes various different types of communication methods, the World Wide Web, being one of the most commonly utilized tools to communicate to the vast, worldwide residing Microsoft family of product users, stockholders, or just simple people who like to be informed about the “software giant.” Microsoft Corporation is very effective with its communication via internet press/news releases because they are always providing the publics with prompt, up-to-date, pertinent, and useful, information, to respond or communicate any issues or circumstances of various natures that Microsoft...
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...Management and Control of the Corporation Kenneth Weddle LEG 205 Strayer University Professor John Taulane September 2, 2015 Shareholders, as the owners of the corporation, are entitled to many legal rights. The most important goal of the corporation should be wealth appreciation for shareholders and many times this is not codified in a specific legal right (Velasco, 2006, p. 409). More often these rights need to be specified in the corporation’s incorporation documents or bylaws. Velasco (2006) describes the right to vote and elect directors and the right to sell stock as the “fundamental rights of the shareholder.” Additionally shareholders have financial rights as well which must be spelled out within the corporation’s bylaws. In a modern, publically traded corporation, it is impossible to for shareholders to set overall business policy or determine strategic direction of a corporation, much less manage the day to day operations of the corporation. Corporate statues, in all states, provide that the board of directors will manage the affairs of the corporation (Hamilton, Macey, & Moll, 2010, p. 405). One of the most important rights that a common shareholder has, as an owner of the corporation, is the right to vote for directors. Most publically traded corporations have traditional voting for directors, in where one share of stock equals one vote for each share owned for each director nominee. Cumulative voting allows for minority shareholders to elect directors...
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...available to corporations. The paper will also discuss how a corporation raises short term and long term capital through this the U.S. financial system. When considering finance, it is understood that it can be used in a number of ways, whether it is used by individuals for personal finance, by the government in terms of public finance or for business in regards to corporate financing. The role of the U.S. financial system plays an important part in corporations raising capital in that the financial system provides several avenues for a firm to gather both short term and long term capital. Monetary institutions have a distinct purpose in the U.S. economy because they provide the resource for corporations to access financial support to raise capital for investment prospects. There are different varieties of financial institutions that supply financial assistance in the United States which range from banks that lend money commercially to companies that are responsible for securities, and then there are the companies that are involved in finance. Such institutions support certain markets and fortify the economic health of the U.S. by transitioning funds among providers of capital and those in need of said capital. A corporation can choose to be private or public, private corporations are generally owned by the CEO meaning the CEO owns 100% of the shares. A corporation can meet the goal of raising capital by using the right financial instrument. A public corporation is permitted...
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...Importance Food security will be helpful if enough food is available for all the persons, there is no barrier to access of food and all persons have the capacity to buy food of acceptable quality. Food availaabilty is a necessary condtion for food security. India is more or less self sufficient in cereals but deficit in pulses and oil seeds. Due to changes in consumption patterns, demand for fruits, vegetables, dairy, meat, poultry, and 38 fishery products has been increasing. There is a need to increase crop diversification and improve allied activities. It may be noted that the slowdown in agriculture growth could be attributed to structural factors on the supply side, such as public investment, credit, technology, land and water management, etc., rather than globalization and trade reforms per se. There are six deficits in Indian agriculture. These are: (i) investment, credit, and infrastructure deficit; (ii) land and water management deficit; (iii) research and extension (technology) deficit; (iv) market deficit; (v) diversification deficit; and (vi) institutions deficit. Reforms are needed to reduce these deficits in order to achieve the following goals of agriculture: (i) 4 per cent growth in agriculture; (ii) equity in terms of higher growth in lagging regions, small and marginal farmers, and women; and (iii) sustainability. Access to food can be increased through employment due to growth in labour intensive sectors and/or through social protection programmes. The...
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...Guidelines to fill in the banking statistics returns SBS-1, SBS-2 & SBS-3 (Fifth edition) STATISTICS DEPARTMENT BANGLADESH BANK July 2013 Members of the Editorial Committee Any suggestion/recommendation for improvement in the contents of this guideline would be highly appreciated. Users may kindly contact with the following persons for their suggestions/ recommendations and queries (if any): 1. Md. Nur-un-Nabi General Manager nurun.nabi@bb.org.bd 2. Md. Lutful Kabir Deputy General Manager lutful.kabir@bb.org.bd 3. Mohammad Nurul Islam Joint Director mnurul.islam@bb.org.bd i Preface to the Fifth Edition In the light of current economic activities and experiences thereof, the fifth edition of the revised directory on compilation of Banking Statistics Returns is in the process of being published. Information/data on banking sector of the country play an important role in formulating monetary policy and determining the trend of economic activities. In order to meet that end, the SBS forms which were used earlier for collection of all types of information/data from the banking sector in Bangladesh have been revised and enlarged. The Statistics Department of the Bangladesh Bank published Banking Statistics Guidelines 8 (Eight) years ago in the form of a booklet for enabling the scheduled banks to fill in the above forms properly and submitting the same to the Bangladesh Bank. In the current edition of the booklet, detailed explanatory notes of the terms have been given in...
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...of business also increases the need for objective verification of data and creates a need for disclosure of more and better information to owners and potential investors. Furthermore, the increase in value, size and activity of capital exchange in security market also increases the opening of taking advantage in lax conditions and to profit by misrepresentation and manipulation. Hence, the main reason for establishing the securities legislation was because large security market requires operating procedures that would protect investors from fraud and guarantee an adequate supply of capital for economic growth. Background of the SEC The Securities and Exchange Commission (“SEC”) is one of several public and private sector rule-making organizations that have an effect on financial reporting for businesses. It plays a crucial role in the development and improvement of financial reporting theory and practice. Frequently the work, accomplishments and contributions of the SEC do not receive the attention given to other group, such as the Financial Accounting Standards Board, the Government Accounting Standards Board, or the American Institute of Certified Public Accountants. A common mistaken belief is that securities legislation only begun...
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...sales are projected to increase in America as people become more environment and health conscious. Some companies with a long history of producing traditional bikes such as Schwinn are creating a division within the corporation to focus on e-bikes. Other companies such as Ultra Motor Company Limited have chosen to focus solely on e-bikes. This paper will discuss the advantages of private corporations and public corporations related to emerging products such as e-bikes. This paper will also address potential disadvantages of operating as a sole proprietorship for a growing business such as e-bike manufacturing and distribution. The advantages and disadvantages of the different forms of business ownership need to be explored to determine the best fit for a business. 1. Ultra Motor Company Limited is a private corporation. What are the advantages of being private and not being traded on a stock exchange? As a result of the Securities Exchange Act of 1934, companies that are traded on a stock exchange such as the New York Stock Exchange (NYSE) must register and file certain information with the U.S. Securities and Exchange Commission (SEC). The main objective is to protect investors from deceit and misrepresentation in the buying and selling of securities. Information about the management of the company along with financial statements certified by accountants is provided to the SEC and...
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...Part 1: The Australian Accounting Environment Chapter 1 An overview of the Australian external reporting environment Review questions 1.1 Refer to pages 6 to 25 of the text. The main bodies responsible for regulating accounting disclosure in Australia are: (i) Australian Securities and Investments Commission (ASIC) Briefly, ASIC is responsible for administering corporations legislation within Australia (which includes various reporting requirements). According to its own website, the role of the ASIC is to enforce and regulate company and financial services laws to protect consumers, investors and creditors. (ii) Australian Accounting Standards Board (AASB) The role of the AASB is to develop a conceptual framework. It is also responsible for ‘making’ accounting standards that have the force of law under the corporations legislation, as well as formulating accounting standards that are to be used by reporting entities that are not governed by corporations legislation, inclusive of entities operating in the not-for-profit sector and public sector entities. The AASB is also responsible for Interpretations Advisory Panels, user focus groups and project advisory panels. As was indicated in this chapter, however, a great deal of the responsibility for developing accounting standards to be released by the AASB is in the hands of the IASB, as is the development of the conceptual framework. It is to be anticipated that only minor...
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...University The issue of public policy has changed dramatically over the years and the privacy of consumers has received considerable attention. The evolution of the Internet has produced a number of diverse concerns regarding the issue of confronting consumer protection for both international and domestic consumer privacy. High profile organizations are exposed to many breaches of personal information and puts these particular organizations are at risk of reputational damage and understanding the scope of an organization’s responsibilities for information security professionals is an absolutely essential. IT security professionals play an important roles managing liability for privacy and security risks for an organization in today’s world where hefty reparations can be bestowed to plaintiffs who place lawsuits upon organizations. Damages can range from big to small and can sometimes be retaliatory. Minimizing liability and reduce risks for an organization from physical and electronic threats can be a daunting task for information security specialists. This specialist must thoroughly comprehend the current legal environment, regulations, laws, and stay current with emerging issues regarding the responsibility of securing not only the companies’ vital information, but also consumers and users alike. An organizations responsibility to educate all employees all obligations and the proper use of technology and security for which information security professionals can assist an...
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...go into detail regarding the eleven titles, or sections, of the document that it consists of. This research paper will then touch upon the different countries around the world that have been subsequently enacted with the Sarbanes-Oxley Act and conclude with the debates over the perceived benefits and costs from both opponents and proponents. The following research paper will prove to be useful for any executive running a public corporation. After reading this research paper, one will come to discover and understand the new standards implemented for corporate accountability as well as the new penalties for acts of wrongdoing. Body The Sarbanes–Oxley Act of 2002, also known as the “Public Company Accounting Reform and Investor Protection Act” by the Senate and “Corporate and Auditing Accountability and Responsibility Act” by the House of Representatives and commonly called Sarbanes–Oxley, Sarbox or SOX, is a United States federal law passed on July 30, 2002, which set new or enhanced standards for all United States public company boards, management and public accounting firms. It received its name after U.S. Senator Paul Sarbanes (D-MD) and U.S. Representative Michael G. Oxley (R-OH). The bill was enacted as a reaction to a number of major corporate and accounting scandals including those affecting Enron, Tyco International, Adelphia, Peregrine Systems and WorldCom. These scandals, which cost investors billions of dollars when the share prices of affected companies...
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