Does the Sarbanes-Oxley Act Promote Ethics in Corporate Governance?

2010 ◽  
Author(s):  
Philip H. Siegel ◽  
John J. O'Shaughnessy
Keyword(s):  
Corporate Governance ◽  
Sarbanes Oxley

Enriching AIS Courses With SOX Compliance Activities

2010 ◽  
Vol 5 (1) ◽  
pp. 1-24 ◽  
Author(s):  
Joann Segovia ◽  
Carol M. Jessup ◽  
Marsha Weber ◽  
Sheri Erickson
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Internal Controls ◽  
Accounting Profession ◽  
Investor Confidence ◽  
Reporting Requirements ◽  
Sarbanes Oxley ◽  
Audit Firms ◽  
Significant Change

A very significant change to the accounting profession occurred in 2002 when the Sarbanes-Oxley Act of 2002 (SOX) was enacted. This legislation had a significant impact on corporations and their audit firms. The objective was to improve corporate governance and its quality of financial reporting to improve investor confidence. This paper provides instructors with a background on SOX and suggests readings and activities that reflect the requirements of SOX as it relates to the AIS environment and the analysis of internal controls. These activities can strengthen students' understandings of how corporations respond to the various reporting requirements of this Act.

An Evolutionary Process—The Federalization of Corporate Governance

2018 ◽  
Author(s):  
Marc I. Steinberg
Keyword(s):  
Corporate Governance ◽  
Historical Perspective ◽  
Evolutionary Process ◽  
Stock Exchanges ◽  
Federal Law ◽  
Sarbanes Oxley

This chapter provides an overview regarding the federalization of corporate governance as an evolutionary process. From this perspective, the chapter examines both state and federal law that impact corporate governance. As the chapter explains, from a historical perspective, the states emerged as the primary regulator of corporate governance. Today, Delaware has emerged as the preeminent state where publicly-held corporations elect to incorporate. Nonetheless, federal law, even from a traditional perspective, impacted corporate governance, such as the SEC’s shareholder proposal rule adopted over 75 years ago. With the enactment of the Sarbanes-Oxley Act of 2002, the Dodd-Frank Act of 2010, SEC rules adopted under the authority of these statutes, and the emergence of stricter substantive listing requirements mandated by the national stock exchanges, federal law principles are now firmly established.

scholarly journals The More, The Better? A Case History Of Audit Committee Regulations

2013 ◽  
Vol 9 (2) ◽  
pp. 105-110
Author(s):  
Songtao Mo ◽  
Yifan Shi ◽  
Yajing Wang
Keyword(s):  
Corporate Governance ◽  
Critical Thinking ◽  
Case History ◽  
Audit Committee ◽  
Learning Experience ◽  
Audit Committees ◽  
Regulatory Environment ◽  
Regulatory Changes ◽  
Sarbanes Oxley ◽  
History Of

An understanding of changing auditing regulatory environment is vital in preparing students for the challenges in the accounting profession. The revised requirements for audit committees are one of the significant changes after the Sarbanes-Oxley Act of 2002. Presenting a case history of regulatory changes for audit committees, this study requires students to critically analyze information and to conduct research on auditing topics. Meanwhile, integrating further discussion on corporate governance into auditing class can enrich students learning experience by stimulating critical thinking.

The Effect of Corporate Governance on Auditor-Client Realignments

2012 ◽  
Vol 31 (2) ◽  
pp. 167-188 ◽  
Author(s):  
Cory A. Cassell ◽  
Gary A. Giroux ◽  
Linda A. Myers ◽  
Thomas C. Omer
Keyword(s):  
Corporate Governance ◽  
Audit Committee ◽  
Data Availability ◽  
Governance Mechanisms ◽  
Portfolio Decisions ◽  
Audit Market ◽  
Sarbanes Oxley ◽  
Corporate Governance Mechanisms ◽  
Audit Firms ◽  
Governance Index

SUMMARY Events leading up to the implementation of the Sarbanes-Oxley Act of 2002 (SOX) increased the public's focus on corporate governance and increased regulatory scrutiny of corporate governance mechanisms. These events also contributed to a massive restructuring in the audit market that resulted in the transfer of a large number of clients from Big N to non-Big N audit firms. We extend prior research examining the determinants of auditor-client realignments by investigating the effect of corporate governance on downward (i.e., from Big N to non-Big N auditors) switching activity. We develop a corporate governance index comprised of governance characteristics that we expect auditors to find more desirable in their clients (specifically, board and audit committee independence, diligence, and expertise). The results suggest that Big N auditors consider client corporate governance mechanisms when making client portfolio decisions. Specifically, downward auditor-client realignments are more likely for clients that score lower on our corporate governance index. However, the influence of audit committee-related corporate governance components on downward auditor-client realignments decreased post-SOX. The reduced effect of audit committee-related corporate governance components is consistent with what would be expected if the audit committee-related rules imposed by SOX reduced the variation in audit committee quality across clients. Data Availability: The data used are publicly available from the sources cited in the text.

Business Intelligence in Corporate Governance and Business Processes Management

2013 ◽  
pp. 249-269
Author(s):  
Alexander Yakovlev
Keyword(s):  
Corporate Governance ◽  
Business Intelligence ◽  
Cost Reduction ◽  
Business Processes ◽  
Transnational Corporations ◽  
Accurate Information ◽  
Main Field ◽  
Maximum Cost ◽  
Sarbanes Oxley ◽  
The U.S

Today is the time of transnational corporations and large companies. They bring to their shareholders and owners the major profits, and they are the main sponsors of scientific and technological progress. However, the extensive way of its development is not possible for environmental, marketing, resource, and many other reasons. So, the main field of competition between companies becomes a fight for the client, the individualization of approach to him, and the maximum cost reduction. At the same time, a series of scandals that erupted in the early 2000s with such major corporations as Enron Corporation, WorldCom, Tyco International, Adelphia, and Peregrine Systems has shown that the system of corporate governance, on which depends the welfare of hundreds of thousands of people, requires serious improvements in terms of transparency and openness. In this regard, the U.S. adopted the Sarbanes-Oxley Act of 2002, under which management companies legally obliged to prove that his decisions are based on reliable, relevant, credible and accurate information (Devenport & Harris, 2010).

Corporate Governance Factors and Auditor Going Concern Assessments

2005 ◽  
Vol 4 (3) ◽  
pp. 5-29 ◽  
Author(s):  
Susan Parker ◽  
Gary F. Peters ◽  
Howard F. Turetsky
Keyword(s):  
Corporate Governance ◽  
Financial Reporting ◽  
Financial Distress ◽  
Audit Committee ◽  
Future Research ◽  
Going Concern ◽  
Sarbanes Oxley ◽  
Auditing Standards ◽  
Distressed Firms ◽  
The Impact

When making going concern assessments, Statement on Auditing Standards No. 59 (Auditing Standards Board 1988) directs auditors to consider the nature of management's plans and ability to mitigate periods of financial distress successfully. Corporate governance factors reflect attributes of control, oversight, and/or support of management's plans and actions intended to overcome financial distress. Correspondingly, this study investigates the impact of certain corporate governance factors on the likelihood of a going concern modification. Using survival analysis techniques, we examine a sample of 161 financially distressed firms for the time period 1988–1996. We find that auditors are twice as likely to issue a going concern modification when the CEO is replaced. We also find that going concern modifications are inversely associated with blockholder ownership. We also confirm Carcello and Neal's (2000) findings with respect to the association between an independent audit committee and an increased likelihood of modification. In a repeated events setting, we find that insider ownership and board independence are inversely associated with repeated going concern modifications. Our study concludes by proposing implications for the current financial reporting environment (including the Sarbanes‐Oxley Act of 2002) and future research avenues.

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