Ancher Public Trading Essay -- Business Management Memo Essays

Ancher Public craftTOBoard of DirectorsFROMLearning aggroup A consultantsDATE appalling 22, 2005SUBJECT Sarbanes-Oxley recommendationsAs consultants for Ancher Public Trading (APT), Learning Team A would like to discuss the implications of the Sarbanes-Oxley (SOX) legislation. This memorandum provides a brief history of SOXs creation, explains the relationship amongst the FASB, SEC and PCAOB, describes the pros and cons of SOX, assesses the impacts of SOX, and lists ethical considerations of SOX. write up of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response to the high profile monetary scandals, such as seen with Enron and WorldCom. The purpose of this act is to protect shareholders and the general commonplace from accounting errors and fraudulent business practices. The Sarbanes-Oxley Act introduced stringent new rules to protect investors by improving the accuracy and reliability of embodied disclosures made consistent to the securities laws. Sarbanes-Oxley is n ot a set of business practices and does not specify how a business should store records rather, Sarbanes-Oxley defines which records are to be stored and for how long. A.) The relationship among the FASB, SEC and PCAOBSOX is administered by the Securities and Exchange way (SEC). The SEC sets deadlines for compliance and publishes rules on requirements. The Securities and Exchange Commission (SEC) is the department to which all publicly-traded companies, effective since 2004, are required to submit one-year reports of the effectiveness of their internal accounting controls. The SEC has broad authority everywhere all aspects of the securities industry. This includes the power to register, regulate, and oversee brokerage firms, transfer agents, and clearing agencies. along with them, is the FASB.The Financial history Standards Board (FASB), is a professional standards board created by accountants to establish Generally Accepted Accounting Principles (GAAP), which are the accounting standards apply by accountants in the U.S. The GAAP reporting method makes it possible for investors and restrictive authorities to accurately determine an organizations financial results.The Public Company Accounting Oversight Board (PCAOB) was created to oversee the activities of the auditing profession. Specifically to oversee t... ... Line56 ,Retrieved August 17, 2001. Retrieved on 8/19/2005, from http//ww.line56.com/articles.Hein, M. (2002). The Sarbanes Oxley act of 2002 effects sweeping changes to the U.S. federal securities laws. Retrieved on August 21, 2005, from www. www.gtlaw.com.Hyatt, J. (2005). Birth of the ethics industry. Business Ethics Online, The magazine of corporate responsibility. Retrieved on 8/19/2005, from www.business-ethics.com. Johnson, C. (2005). Pros and cons of accounting rules weighed Sarbanes Oxley - more audits, accountability. San Francisco Chronicle on the Web. Retrieved August 17, 2001, from gin/article.cgi?f=/c/a/2005/05/05/BUGJBE3DQ71.html. Leporte, G. (2007). Chief of the routine of small business policy at the U.S. sSecurities and Exchange Commission. Retrieved on August 17th, 2005, from http//accounting.smartpros.com .Linsley, C. (2003). Auditing, risk management and a post Sarbanes-Oxley world. Review of Business.Solomon, Deborah. (March, 2005) Accounting regulation Exposes Problems But Draws Complaints About Costs. Wall Street Journal.Wallace, S. (2005). Only the ethical involve apply. The Christian Science Monitor. March 30, 2005 edition.