Sarbanes Oxley Act

The Sarbanes-Oxley Act of 2002 has finally forced corporations to examine the validity of their spreadsheets. They are beginning to understand the spreadsheet error literature, including what it tells them about the need for comprehensive spreadsheet testing. However, controlling for fraud will require a completely new set of capabilities, and a great deal of new research will be needed to

Company failures and penalties due to ethical shortcomings have increased the need to promote, encourage, and enforce ethical principles in organizations. Such enforcement helps reduce unethical practices, increase corporate social responsibility, and foster a sain business and collaboration environment. This article identifies the two most common types of ethics programs namely integrity-based and compliance-based ethics programs. After defining these terms, the article analyzes the key differences between them based on the phases of program management that include initiation, planning, implementation, and control. The article also synthesizes key findings related to staffing for the program’s management, ensuring a fit between the selected program and the organization structure, implementing appropriate staff training, and deploying processes to evaluate the program. The article also presents some implications for organizations in the current business climate and critically analyzes prior quantitative studies that were focused on the implementation of ethics programs in various industries. In concluding the work presented, the article suggests some opportunities for further research related to a possible combination of the two types of integrity programs.

The Sarbanes-Oxley (SOX) is an important set of regulations widely employed mostly by the public sector’s board of management as well as public accounting organizations in the United States.1 This paper looks at the SOX Act in details and explains how the act has played an enormous role in the accounting industry to assess its effects to the accounting industry since it was implemented.

This study examines whether internal control quality is associated with auditors’ going concern assessments following the implementation of the Sarbanes–Oxley Act of 2002 (SOX). Based on a sample of financially distressed firms that issued internal control reports under SOX Section 404 in 2004 and 2005, we find that firms with material internal control weaknesses are more likely to receive going concern audit opinions. Further analysis indicates that the positive association between disclosures of material weaknesses and auditors’ propensity to issue a going concern opinions is largely driven by a subset of firms that disclose company-level material weaknesses, suggesting that only the more severe type of internal control material weakness influences the going concern assessment. These findings add to our understanding of the audit opinion formation process and the potentially important impact of internal control quality on that process.

Saat ini pembangunan infrastruktur di Indonesia sangat berkembang pesat. Perusahaan konstruksi bersaing untuk memperebutkan proyek pembangunan infrastruktur di Indonesia. PT NKE salah satu perusahaan konstruksi swasta yang baru saja terlibat kasus pelanggaran hukum. Bagaimana langkah strategis yang dilakukan PT NKE dalam menghadapi kasus pelanggaran hukum dan bagaimana cara NKE mampu tumbuh dan
mempunyai daya saing dengan kompetitor di Industri jasa konstruksi.
Perusahaan NKE harus menyelesaikan permasalahan hukum serta bertanggung jawab mengganti rugi sebagai bentuk corporate responsibilities, kemudian melakukan implementasi Good Corporate Governance (GCG), secara bertahap perusahaan membangun Brand image & Company Reputation yang lebih baik dengan melakukan
rebuilding trust strategy, selanjutnya memperbaiki tata nilai perusahaan (corporte values) untuk menciptakan SDM yang berkomitmen supaya tidak terjadi lagi kasus pelanggaran hukum dan mampu mengimplementasikan tata nilai perusahaan secara baik dalam perilaku
saat bekerja, serta untuk mencegah terjadinya kasus pelanggaran hukum perusahaan melakukan aturan dari Sarbanes Oxley Act (SOX) & Enterprise Risk Management (ERM) COSO bertujuan untuk mencegah terulangnya kasus-kasus pelanggaran yang terjadi di perusahaan, inisiatif bersama untuk memerangi penipuan perusahaan dan mampu
mendetiksi dini apabila terjadi praktik kecurangan di perusahaan.
Hal inilah yang menjadi langkah strategis perusahaan untuk mampu berkembang dan mampu memperoleh kepercayaan kembali dari para stakeholders, serta memberikan peluang untuk mendapatkan proyek pembangunan infrastruktur di Indonesia.

Kata Kunci: General Business Environment, PT NKE, DGI, Good Corporate Governance, Restrukturisasi Perusahaan, Rebuilding trust strategy, Corporte Values, Sarbanes Oxley Act, Enterprise Risk Management, ERM COSO.

The control objectives for information and related technology (COBIT) is a "trusted" open standard that is being used increasingly by a diverse range of organizations throughout the world. COBIT is arguably the most appropriate control framework to help an organization ensure alignment between use of information technology (IT) and its business goals, as it places emphasis on the business need

Accounting and corporate governance scandals that occurred in Europe and the United States at the beginning of the 21rst century have called into question the quality of statutory auditing of financial accounts. In order to prevent the repetition of such huge deficiencies, legislators from both sides of the Atlantic engaged in a broad reform movement of auditing regulation. In the United States, the Sarbanes-Oxley Act created the Public Company Accounting Oversight Board (PCAOB). In France, the Haut Conseil du commissariat aux comptes oversees the auditing profession. This article compares those two institutions with a double aim, both descriptive and explicative. To this end, we will first rely on a typology of auditing regulation modes. We will then propose a twofold theoretical framework in order to interprete the institutional change induced by the creation of those new oversight bodies.

The Sarbanes Oxley Act of 2002 (SOX) introduced several governance reforms that considerably increased the total risk exposure of CEOs. We examine the effects of these regulatory changes on compensation contracts of CEOs and their effect on risk taking subsequent to SOX. We find that while overall compensation did not change, salary and bonus compensation increased and option compensation decreased following the passage of SOX. The sensitivity of CEO’s wealth to changes in shareholder wealth also decreased after SOX. These results indicate that the pay for performance sensitivity of CEO compensation has declined following SOX. Our results indicate that these changes reduced investments in research and development, and capital expenditures. We also document that the above changes in CEOs ’ pay for performance sensitivities and their risky investments following SOX are associated with a reduction in stock return volatility. However, we do not find any evidence indicating that these ch...

Congress passed the Sarbanes-Oxley Act to restore investor confidence, which had been deflated by massive business and audit failures, epitomized by the demise of the Enron Corporation and Arthur Andersen LLP. The Act altered the roles and ...

Author reviews academic literature and discusses about multinational enterprises (MNEs) in the service sector that decided to improve their businesses by forming strategic alliances. It is covered specifically the alliances of international accounting firms (IAFs) to establish the following objectives: review major reasons for companies to create strategic alliances and their preferred modalities, and verify the IAFs business performance based on their revenues obtained on 2004 and 2014—before and after the most recent worldwide economic recession.

The objective of this work is to define a decision support system over SOX (Sarbanes-Oxley Act) compatibility and quality of the Purchase Orders Creation Process based on Artificial Intelligence and Theory of Argumentation knowledge and techniques. This proposed model directly contributes to both scientific research artificial intelligent area and business practices. From business perspective it empowers the use of artificial intelligent models and techniques to drive decision making processes over financial statements. From scientific and research area the impact is based on the combination of 1) an Information Seeking Dialog Protocol in which a requestor agent inquires the business case, 2) a Facts Valuation based Protocol in which the previously gathered facts are analyzed, 3) the already incorporated initial knowledge of a human expert via initial beliefs, 4) the Intra-Agent Decision Making Protocol based on deductive argu-mentation and 5) the semi automated Dynamic Knowledge Learning Protocol. Last but not least the suggested way of integration of this proposed model in a higher level multiagent intelligent system in which a Joint Deliberative Dialog Protocol and an Inter-Agent Decision Deductive Argumentation Making Protocol are described.

We document that firms management of accounting earnings increased steadily from1987 until the passage of the Sarbanes Oxley Act (SOX), with a significant increaseduring the period prior to SOX, followed by a significant decline after passage of SOX.However, the increase in earnings management preceding SOX was primarily in poorlyperforming industries. We also show that the informativeness of earnings increasedsteadily over