After the corporate scandals of the early 2000s, Congress

After the corporate scandals of the early 2000s, Congress passed legislation that it hoped would renew faith in the accounting profession. Study the laws that were pass ed and examine the effects of those laws. Why were they passed?

After the corporate scandals of the early 2000s Congress passed legislation

After the corporate scandals of the early 2000s, Congress passed legislation that it hoped would renew faith in the accounting profession. Study the laws that were pass ed and examine the effects of those laws. Why were they pass ed?

A good general format for a formal business report includes the following:
A cover sheet that lists the name of the report, your company name and address and the date.

A table of contents, if the report is longer than 10 pages.

Moreover, an executive summary; an introduction section explaining the background of the report and any special methodology used.

Further, the main body of the report, with appropriate subheadings.

Also, a section with conclusions and recommendations.

Finally, an appendix for non-essential attachments such as charts and graphs that don’t need to be in the body of the report.

More details;

The Impact of the Sarbanes-Oxley Act of 2002

What Does The Sarbanes-Oxley Act Do?

One direct effect of the Sarbanes-Oxley Act on corporate governance is the strengthening of public companies’ audit committees. The audit committee receives wide leverage in overseeing the top management’s accounting decisions. The audit committee, a subset of the board of directors consisting of non-management members, gained new responsibilities, such as approving numerous audit and non-audit services, selecting and overseeing external auditors, and handling complaints regarding the management’s accounting practices.

The Sarbanes-Oxley Act changes management’s responsibility for financial reporting significantly. The act requires that top managers personally certify the accuracy of financial reports. If a top manager knowingly or willfully makes a false certification, he can face between 10 to 20 years in prison. If the company is forced to make a required accounting restatement due to management’s misconduct, top managers can be required to give up their bonuses or profits made from selling the company’s stock.