1 / 8

Is it Time to Change SOX?

Is it Time to Change SOX?. Orkhontuul Turmandakh MA1N0216. Introduction. In 2000 and 2001, Congress passing the Sarbanas -Oxley Act of 2002 (SOX)for accounting irregularities at a number of large corporations. Not everyone pleased with the law.

lobo
Download Presentation

Is it Time to Change SOX?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Is it Time to Change SOX? OrkhontuulTurmandakh MA1N0216

  2. Introduction • In 2000 and 2001, Congress passing the Sarbanas-Oxley Act of 2002 (SOX)for accounting irregularities at a number of large corporations. • Not everyone pleased with the law. • Many companies complain that compliance with SOX reporting regulations. • They spend much time and money. For example: spent an average of $3.8million in 2005 to comply with the law.

  3. Introduction • The most troublesome aspect of SOX appears to be Section 404. • Section 404 requires companies 1st review their own systems for ensuring accurate financial reports and then have them tested by outside auditors. • In 2006, U.S. Treasury Secretary Henry Paulson acknowledged the impact of the accounting previsions, especially on small business.

  4. Introduction • Supporters of SOX claim that the law related reforms have produced more reliable corporate financial statements, which investors rely on when deciding whether to buy or sell shares.

  5. Introduction • According to Investment officers- reports that improvements have been shown in each of the past 4 years. • The jury is out on SOX will be changed to relieve the burden on U.S corporations. • In 2000 and 2001,on the day SOX was signed into law, the market value of the Wilshire 5000, a proxy for all public companies in the United States, by 10.5trillion.

  6. Introduction • In 2007, value of Wilshire 5000 was 14.5 trillion. • While the markets factor many events, the passage of SOX has not had a significantly negative impact.

  7. Question??? • In addition to investors, who else might be benefiting directly from the implementation of the Sarbanes-Oxley Act?

  8. Answers • Outside auditors: Why? Because this Section 404 of SOX systems for ensuring accurate financial reports and then have them tested by outside auditors. • Public companies: SOX was signed into law, the U.S market value of the Wilshire 5000 increased from 10.5 to 14.5 trillion. • Country’s Government: • The government attracted more investors. • increased foreign investment • made valuable contribution

More Related