Week 6
assignment
The following is
the topic for this week’s team assignment:
The
Sarbanes-Oxley Act (SOX) signed into law in July 2002 was intended to improve
the accuracy of the financial statements prepared by publicly held companies.
Carefully read the summary of this Act.
A. Discuss how
this law is likely to affect any 4 of the following 7 issues:
Audit committees
of public company boards of directors
The CEO’s and
CFO’s of public companies
Outside
independent audit firms
SOX section 404
on Internal Control
The accuracy of
public company financial statements andthe cost of capital for public
companies
The Main
Advantages and Disadvantages of SOX
What changes
should be made to SOX?
B. If you believe that legislation can guarantee
the accuracy of public company financial statements, please explain why
previous laws have failed. If you believe that the reverse is true, please
explain why CEOs and CFOs are paying so much attention to this law.
Your group
submission document should approximately be between 10 – 15 pages following the
appropriate format.
