Sarbanes Oxley and Business Practices Importance of Sarbanes-Oxley Act provisions in Business Sarbanes-Oxley Act has made some provisions in order to overcome the problems of accounting scandals and manipulation. Section 301 has made provision regarding the audit committee in which committee has to receive and retain fair treatment to complaints, internal accounting controls and auditing matters.

Through this provision, company has started taking complaints in a positive manner (Garner, McKee & McKee, 2008). Complaints help in making changes within the organizational structure and in controlling the internal accounting process. Provision under Section 302 is focused towards the accuracy of the financial statement. Companies are now required to issue the certificate regarding the accuracy of financial statement. As per Sarbanes-Oxley Act case study assignment help experts This provision has reduced the manipulations in the financial statement of the companies and also developed the responsibility among the members. Provision under Section 407 has also changed the opinion of various companies. Companies are now using one financial expert, who has the knowledge of US GAAP, to help in doing proper auditing of financial statements.

Financial expert helps in identifying the problem areas more effectively (Greene, 2005). Companies charge penalties for the corporate frauds and alterations in the documents. This provision helps in reducing the accounting scandals within the company. Section 404 has made the provision regarding the assessment of internal controls. This provision states that companies have to make proper assessment before issuing the annual report. Assessment of annual report by the financial expert helps in overcoming problems of issuing wrong information (Miller, 2012). Companies are started following proper ethics, while preparing the financial statements. Section 806 has made the provision regarding the protection of whistleblower. This provision develops the confidence among members for reporting any wrongdoing and fraud within the organization. Due to the protection for whistleblowers, frauds and wrongdoing activities performed by companies have been reduced International Business Assignments help.

Benefits of Changes Changes that have been made by the companies due various provisions under Sarbanes Oxley Act provide benefits to the society. Reduction in frauds and unfair practices helps in protecting the interest of society. Providing correct information in the financial statement develops the confidence among investors and motivates them to make further investment. Complaints made by the customers and employees are treated fairly under the provision, which ensures social welfare (Holt, 2007). People can take any actions against any unfair trade practice under the provision of Sarbanes Oxley Act. Providing correct information in the financial statement helps in developing the organizational image. Sarbanes Oxley Act provides right to the society members doing any complaint against fraud companies. Scandals made by the companies such as Enron and WorldCom have generated awareness among the members and reduced the trust of public in financial accounting. All these accounting scandals could be prevented through the provision of Sarbanes Oxley Act. Members within the society can be able to save their interest through these provisions (Ambler, Massaro, Stewart & Acre, 2005). In addition to this, every person within the organization is responsible and accountable for the activities they performed.

References- Ambler, D.E., Massaro, L., Stewart, K.L. & Acre, J.W. (2005). Sarbanes-Oxley Act: Planning & Compliance. USA: Aspen Publishers. Garner, D.E., McKee, D.L. & McKee, Y.A. (2008). Accounting and the Global Economy After Sarbanes-Oxley. USA: M.E. Sharpe. Greene, E.F. (2005). U.S. Regulation of the International Securities and Derivatives Markets. USA: Aspen Publishers Online. Holt, M.F. (2007). The Sarbanes-Oxley Act: Costs, Benefits and Business Impact. USA: Butterworth-Heinemann. Miller, R.L. (2012). Fundamentals of Business Law: Excerpted Cases. USA: Cengage Learning.  

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