The Sarbanes Oxley Law - 1585 Words

Introduction: Trinity Industries made a very commendable effort in accommodating with what has now become one of the most important aspect of any public company, the SOX compliance, and as this case study illustrates, a good example of managing such big changes that can affect companies in the unforeseen future. After many renown cases mentioned, like Enron and Adelphia Communication, it was imperative that the government would take a much required action to curtail any such accounting scandals from happening again. Hence, the Sarbanes-Oxley law was enforced, that is analyzed as the SOX compliance in the case study. It could be identified that the Trinity Industries were able to meritoriously make a difference in implementing and maintaining their accounting practices and accountability of their financial system in such a way that they had no issues with SOX compliance since the passage of the act in 2002. In this there were certain key success-factors that played a big role that are, to some exte nt, exemplified by the author. But firstly, in the start their main focus was to take care of the basic sections of the SOX compliance which were sections 302 and 404. Section 302 focused on the certification of the internal controls and required the company to provide accurate disclosure, whereas, section 404 complemented section 302 as it required the company to provide the assessment of internal controls and hence an external audit of the management and adequacy of internalShow MoreRelatedSarbanes Oxley Federal Law1073 Words   |  5 Pagesfactors. One of these factors is federal law. Federal laws aim at regulating all the business processes starting from controlling transactions and ending by protecting investors. This paper aims to explain the impact that one of such federal laws known as the Sarbanes-Oxley legislation has had and is expected to have on information technology organizations. The Sarbanes-Oxley legislation or SOX can be defined as one of the most important federal laws of the United States for public companiesRead MoreSarbanes Oxley Act Paper934 Words   |  4 PagesRunning Head: SARBANES OXLEY ACT Sarbanes Oxley Act Introduction Sarbanes Oxley Act is focused towards identifying accounting frauds in different public companies. This paper discusses about various reasons for the introduction of Sarbanes Oxley Act and causes that has been overlooked. Causes for Sarbanes-Oxley Act Sarbanes Oxley Act is US federal law, which is established in order to set out the some standards for accounting firms, public company boards and managementRead MoreEssay on The Sarbanes-Oxley Act852 Words   |  4 Pagestoday that are using the Sarbanes-Oxley (SOX) legislation that helps to safeguard their company and their financial records. The Sarbanes-Oxley act began in 2002 and the purpose behind this act was to protect organizations, it had a major impact on accounting and record keeping. Because of Enron, they passed this act for publicly-traded corporations to better implement control to their enterprise data. â€Å"Named after Senator Paul Sarbanes and Representative Michael Oxley, who also set a number ofRead MoreThe Creation of Sarbanes Oxley1406 Words   |  6 PagesThe Creation of Sarbanes Oxley Introduction In 2002, the Sarbanes Oxley Act was ratified to address critical challenges impacting the way all firms are reporting financial information. Since this happened, a variety of companies have been implementing these standards using different techniques. In the case of IT activities, these provisions are designed to enhance reporting and communication. To fully understand the impact of the law on IT requires examining if Sarbanes Oxley is not already embracedRead MoreCorporate Scandals And The Implact Of The Sarbanes Oxley Act1472 Words   |  6 PagesA LOOK AT CORPORATE SCANDALS AND THE IMPLACT OF THE SARBANES-OXLEY ACT OF 2002 I. INTRODUCTION An economic boom filled with fraud, collapsed in the early 2000s with the unravelling of Enron in October 2001 followed by the implosion of WorldCom and many others big corporations. The downfall of these major companies led to a wide spread crisis of confidence in the financial markets. A crisis caused by executive greed was able to be magnified when the gatekeepers, the auditors, lawyers and analystsRead MoreThe Sarbanes Oxley Act Of 20021563 Words   |  7 PagesThe Sarbanes-Oxley Act of 2002 (SOX) was enacted to bring back public trust in markets. Building trust requires ethics within organizations. Through codes of ethics, organizations conduct themselves in a manner that promotes public trust. Through defining a code of ethics, organizations can follow, the market becomes fair for investors to have confidence in the integrity of the disclosures and financial reports given to them. The code of ethics includes the promotion of honest and ethical conductRead More Sarbanes Oxley Act of 2004 Essay1713 Words   |  7 PagesSarbanes Oxley Act of 2004 The Sarbanes-Oxley Act of 2002 was signed into law on July 30, 2002 by President Bush. The new law came after major corporate scandals involving Enron, Arthur Anderson, WorldCom. Its goals are to protect investors by improving accuracy of and reliability of corporate disclosures and to restore investor confidence. The law is considered the most important change in securities and corporate law since the New Deal. The act is named after Senator Paul Sarbanes of MarylandRead MoreThe Sarbanes-Oxley Act Essay1162 Words   |  5 PagesIntroduction The Sarbanes-Oxley Act, or SOX Act, was enacted on July 30, 2002. Since it was enacted that summer it has changed how the public business handle their accounting and auditing. The federal law was made coming off of a number of large corporations involved in scandals. For example a company like Enron was caught in accounting fraud in late 2001 when the company was using false financial statements. Once Enron was caught that had many lawsuits filed against them and had to file for bankruptcyRead MoreSarbanes-Oxley Act Research Paper1097 Words   |  5 PagesSarbanes-Oxley Act of 2002 Karla Azcue ACC 120-09 Mr. Donald Senior The Sarbanes-Oxley Act of 2002 is one of the most important legislations passed in the 21st century effecting financial practice and corporate governance. This act was passed on July 30, 2002 thanks to Representative Michael Oxley a republican from Ohio and Senator Paul Sarbanes a democrat from Maryland. They both passed two different bills that pertain to the same problem which had to do with corporations auditing accountabilityRead MoreThe Implications of the Sarbanes Oxley Act on the Accounting Profession755 Words   |  4 PagesThe Implications of the Sarbanes Oxley Act on the Accounting Profession Abstract On July 30, 2002, the Sarbanes Oxley Act (also known as SOX) was signed into law by President George W. Bush. The Sarbanes Oxley Act of 2002 is a federal law that set new or improved standards for all U.S. public company boards, management and public accounting firms. Covered in the eleven titles are additional corporate board responsibilities, auditing requirements and criminal penalties. This