Impact of the Sarbanes Oxley Act on Accounting - Term Paper Example


Extract of sample
Impact of the Sarbanes Oxley Act on Accounting

Under such a situation, the auditor is at fault. However, people normally neglect to provide supporting evidence that justifies the claims. In this situation, an official auditor will either visit the person at fault or the person will be allowed specific number of days to produce reasonable evidence. However, “new legislation in the United States known as the Sarbanes-Oxley Act has been introduced recently to ensure fair reporting of asset valuation” (Omnix Asset Management). Asset valuation before and after Sarbanes-Oxley Act Prior to the introduction of Sarbanes-Oxley Act, most firms had practiced unfair asset valuation. Asset valuation issues are mainly associated with acquisitions. Determining the cost of acquisition is a major difficulty that arises when valuing an acquisition. Normally, the amount paid to acquire the company reflects acquisition cost. However, valuation of acquisition cost would be more complicated if acquisition is made on the strength of stock rather than cash. The situation becomes worse if final price is contingent on the assets received or on the acquired entry’s performance. It would be a cumbersome task for the auditor to assess the likelihood of acquired entity in meeting performance objectives. ...
Download paper


Impacts of Sarbanes Oxley Act on Accounting Impacts of Sarbanes Oxley Act on Accounting Introduction/Issue Although auditing is the most effective tactic to get a true and fair view of the state of affairs of a company, certain audit issues such asset valuation, asset ownership, and manager representation challenge the scope of auditing…
Author : slang
Download 0

Related Essays

Sarbanes Oxley Act and Independence Responsibility View
13 pages (3263 words) Research Paper
Making Sure Enron Does Not Happen Again: The Sarbanes-Oxley Act of 2002
14 pages (3514 words) Research Paper
A global economic and financial boom in the 20th and 21st century
5 pages (1255 words) Essay
Adoption of the Sarbanes-Oxley Act of 2002 as an Important Piece of Legistion
3 pages (753 words) Assignment
Adoption of Sarbanes-Oxley Act of 2002 as an Important Piece of Legislation
3 pages (753 words) Term Paper
Euro Crisis in terms of the Greek Debt Issue
6 pages (1506 words) Research Paper
Research and Discuss the Sarbanes-Oxley Act of 2002
8 pages (2008 words) Term Paper
Sarbanes-Oxley Act Article Analysis
3 pages (753 words) Essay
Sarbanes-Oxley Act
4 pages (1004 words) Essay
Complexities of the U.S. Financial System
3 pages (753 words) Research Paper
Coca-Cola Financial Statements
1 pages (251 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!