In 2002, the Sarbanes-Oxley Act (SOX) was passed in the United States to strengthen the capital marketplace.
Question:
In 2002, the Sarbanes-Oxley Act (SOX) was passed in the United States to strengthen the capital marketplace. In the following year, there were many debates in Canada about whether the securities commissions here should adopt the same regulations. In the end, Canada did adopt a similar level of regulation with the introduction of the Canadian Public Accountability Board (CPAB).
Instructions
a. Why was the Sarbanes-Oxley Act issued and what are its key components?
b. What impact do you think the Act had on the U.S. capital marketplace?
c. What was the major spillover effect in the Canadian regulatory environment?
d. Since SOX and the CPAB have been in place, continuing pressure has been felt in a number of areas relating to auditor independence requirements. Identify three current and emerging issues the CPAB has studied and reported on. What is the CPAB’s position?
Step by Step Answer:
Intermediate Accounting Volume 1
ISBN: 978-1119496496
12th Canadian edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy