Ethical, Fraud, and Legal Issues for Accountants

THE SARBANES-OXLEY ACT OF 2002

Write the answers to the following questions in your own words.

1. Describe five advantages of the Sarbanes-Oxley Act of 2002.

2. Describe five disadvantages of the Sarbanes-Oxley Act of 2002.

3. Laws are often reactive, in response to an event of the past. Pick one Section in each of Titles 2, 3, and 4(Title 2 Auditor Independence, Title 3 Corporate Responsibility, Title 4 Enhanced Financial Disclosures), give one company that you think the section was created for and why. Try to use a different company. Each section can apply to multiple companies so choose the company that you think is the best fit and explain why.