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August 31, 2021

In a memo to the owner, discuss important changes for businesses and managers as they relate to SOX.

General Questions

You are a financial adviser with a client in their first year of operation. The owner is curious about the changes in law surrounding the Sarbanes–Oxley Act (SOX) and how these changes came about and will affect their company.

Website: https://www.sarbanes-oxley-101.com/

Based on your readings, use of technology, literature, and other sources do the following:

In a memo to the owner, discuss important changes for businesses and managers as they relate to SOX.
How are the principles and assumptions of accounting effected and how has financial reporting changed over time?
Feel free to discuss a specific case of financial statement abuse or the overall effect of the SOX Act as it relates to financial reporting.
A discussion regarding ethical conduct of managers as it relates to the passing of SOX could also be included.

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