Your CEO read a recent report on the importance of the SOX Act, but he acknowledged that he does not know much about it. He requested that you explain why the SOX Act was enacted and if you think it has helped the industry.
• Describe at least 3 main reasons that you think prompted the U.S. Congress to pass the SOX Act.
o Examine each of the following areas:
- Governance
- Auditor independence
- Disclosure practices
- Regulation of public accounting firms
o Do two things for each of these areas:
- Explain at least 1 provision in the SOX Act to provide expansive regulation to address what was generally seen as systematic failures in each area.
- State whether or not you agree that the new provisions dealt with the issues that you think prompted the U.S. Congress to enact the SOX Act, and explain your rationale for each area.
Objective: • Develop critical skills by analyzing ethical and legal issues and problems, recognizing and assessing such issues and recommending specific actions to implement your analyses
• Improve oral and written communication skills through class discussions, cases analyses, formal and informal presentations, and group and written assignments