Friday, August 2, 2019
Ancher Public Trading Essay -- Business Management Memo Essays
Ancher Public Trading TO:          Board of Directors FROM:     Learning Team A consultants DATE:          August 22, 2005 SUBJECT:      Sarbanes-Oxley recommendations As 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 SOX ¡Ã‚ ¦s 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. History of SOX - the Sarbanes-Oxley Act of 2002 is legislation in response to the high profile financial scandals, such as seen with Enron and WorldCom. The purpose of this act is to protect shareholders and the general public 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 corporate disclosures made pursuant to the securities laws. Sarbanes-Oxley is not 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 PCAOB „ «Ã‚     SOX is administered by the Securities and Exchange Commission (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 annual reports of the effectiveness of their internal accounting controls. The SEC has broad authority over 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. „ «Ã‚     The Financial Accounting Standards Board (FASB), is a professional standards board created by accountants to establish Generally Accepted Accounting Principles (GAAP), which are the accounting standards used by accountants in the U.S. The GAAP reporting method makes it possible for investors and regulatory authorities to accurately determine an organization's financial results. „ «Ã‚     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 office 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 Rule Exposes Problems But Draws Complaints About Costs. Wall Street Journal. Wallace, S. (2005). Only the ethical need apply. The Christian Science Monitor. March 30, 2005 edition.
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