The Tax Advantages Of Sarbanes Oxley Essay - 969 Words

The Tax Advantages and Disadvantages of Sarbanes-Oxley Afua Nyamekye Liberty University The Tax Advantages and Disadvantages of Sarbanes-Oxley The 1990s and the early 2000s was a time that the world witness an explosion of fraud in the corporate world. Corporate fraud like Enron, HealthSouth, Waste Management, WorldCom, Lehman Brothers, etc. was so disturbing that lawmakers felt the need for a law to help curb down these frauds. Lawmakers came out with Sarbanes Oxley named after Senator Paul Sarbanes and Rep. Michael G. Oxley, the co-sponsors of the act. The purpose of this essay is to discuss some of the tax advantages and disadvantages of Sarbanes-Oxley and to explore whether the advantages outweigh the disadvantages for small businesses as well as the tax benefits for those businesses. The Tax Advantages of Sarbanes-Oxley The main objective of the Sarbanes-Oxley act was to reduce fraud. So far that objective seem to have been obtain. Since SOX was enacted, there has not been a major domestic corporate financial scandal uncovered other than the options back-dating scandal that occurred before July 2002 (Jahmani Dowling, 2008). It is a tax advantage because companies and investors are not losing money. Another advantage of that resulted from Sarbanes-Oxley Act is that the meetings of audit committees increased in frequency. â€Å"One of the primary goals of SOX is to increase investor confidence and the assurance of the integrity of the U.S. capitalShow MoreRelatedThe Sarbanes Oxley Act ( Sox )1526 Words   |  7 Pages Essay #1- Tax Advantages and Disadvantages of Sarbanes-Oxley Eric Kitts Liberty University â€Æ' Introduction The Sarbanes-Oxley Act (SOX) of 2002 was implemented to deter fraudulent activities amongst companies by monitoring and auditing financial activities as well as set up internal controls to aid in the safeguard of company funds and investor’s interest. SOX also regulates the non-audit tax services (NATS) that can be performed by an auditing firm. SOX was passed by Congress in 2002 in anRead MoreThe Sarbanes Oxley ( Sox ) Act Of 2002926 Words   |  4 PagesThe Sarbanes-Oxley (SOX) Act of 2002 was legislated by Congress to restore reliability of financial statements with the objectives to raise standards of corporate accountability, to not only improve detection, but to also prevent fraud and abuse (Terando Kurtenbach, 2009). Additionally, SOX was the response to general failure of business ethics such as the propagation of abusive tax shelters and greater aggressive tax avoidance strategies (Raabe, Whittenburg, Sanders, Sawyers, 2015). Tax AdvantagesRead MoreSmall Business Idea1156 Words   |  5 Pagesfactors affecting the type of business organizations that an owner should form, so that it is most beneficial for him and the product or services provided. In this paper, the four business structures are evaluated and the association of the legal, tax and accounting implications with the different structures are also discussed. Suppose that the government has released funds to set up small businesses, I would set up a language services company. The services will include translation, transcriptionRead MoreCase 2: Kpmg: How Many Firms? Essay769 Words   |  4 PagesProfessional standards do not allow for a company’s auditors to also provide tax services and still retain their independence. The SEC and the PCAOB have put restrictions on the nonaudit services that a company’s auditors can provide. These restrictions really limit the company’s auditors to the extent that if a firm provides auditing services for a company they cannot really provide any other types of services. This limitation was put into place in order to maintain the independence of auditorsRead MoreThe International Financial Reporting Standards Essay1210 Words   |  5 Pagesa list of minimum headings that must be displayed in balance sheet. Deferred taxes  Ã¢â‚¬â€Under the provision of US GAAP, Deferred taxes are classified as current or non-current on basis of division of associated non-tax asset or liability for financial reporting. While under IFRS Deferred tax asset and liabilities are always considered as non-current. Equity: Division of capital instruments is based on the substance of issuer s obligations which may be either liability or equity, under IFRS. MezzanineRead MoreThe Sarbanes Oxley Act Of 20021015 Words   |  5 PagesThe Sarbanes-Oxley Act of 2002, also known as the SOX Act, is enacted on July 30, 2002 by Congress as a result of some major accounting frauds such as Enron and WorldCom. The main objective of this act is to recover the investors’ trust in the stock market, and to prevent and detect corporate accounting fraud. I will discuss the background of Sarbanes-Oxley Act, and why it became necessary in the first section of this paper. The second section will be the act’s regulations for the management, externalRead MoreSwot Analysis Of Honda1603 Words   |  7 Pagesprofitability. The current global motorcycle manufacturing sector is full of competition. It, therefore, becomes crucial for every manufacturer to evaluate their strengths and weaknesses and then identi fy the opportunities to exploit to gain competitive advantage. Honda is Japanese based automobile company; it has numerous subsidiaries in Asia, Europe, and North America. Due to the advancements in technology, Honda will be required to make use of the latest technological trends to stay competitive. The businessRead MoreThe Sarbanes Oxley Act Of 20021274 Words   |  6 Pagesare the Sarbanes-Oxley Act of 2002 and the recently approved by Congress act, the Dodd-Frank Wall Street reform and Consumer Protection of 2010. While these acts have been implemented with the economy and the consumer in mind, there have been a lot of controversy on whether these acts have in fact benefitted the economy or not. We will analyze and explain the two before mentioned acts and will provide an overview of the point of view of supporters and the opposition. The Sarbanes-Oxley Act of 2002Read MoreWhat Are Five Elements Necessary For Commit Fraud?1739 Words   |  7 PagesCressey’s fraud triangle. Pressure is when there a need cannot be satisfied by conventional means. Pressure answers the question of why fraud is committed, which include: excessive debts, cannot afford current lifestyle, and a increases in the costs of tax preparation and litigation. Opportunity is when a trained individual uses his or her skills to violate company trust by not taking time off or knowing the â€Å"ins† and the â€Å"outs† of the job. Rationalization occurs when he or she provides reasoning as toRead MoreSarbanes Oxley Act : The Public Company Accounting Reform And Investor Protection Act Of 20021452 Words   |  6 PagesSarbanes-Oxley Act, which is as often as possible alluded to as SOX or Sarbox, was presented 6 years back in 2002, or to be more particular, was authorized on July, 30 2002. This demonstration is otherwise called th e Public Company Accounting Reform and Investor Protection Act of 2002. This demonstration showed up not without a moment s delay with no reasons, there were not kidding requirements for its advancement and institution. There was a progression of bookkeeping and corporate outrages that