Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
4th Edition
ISBN: 9780134408897
Author: Jonathan Berk, Peter DeMarzo
Publisher: PEARSON
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Question
Chapter 29, Problem 15P
Summary Introduction
To discuss: How the provisions of Sarbanes-Oxley Act would affect the corporate governance.
Introduction:
Sarbanes-Oxley is an act that was enacted in the year 2002 by Country U’s Congress, mainly to avoid the occurrence of misconduct. Its main aim is to protect the investors from corporate abuse.
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The American Competitiveness and Corporate Accountability Act of 2002 is otherwise known as the Sarbanes-Oxley Act. Provisions of this law significantly affected capital markets, corporate governance and the Accountancy Profession especially the area on auditing. true or false?
How do ‘audits’ work as a corporate governance mechanism
What is the link between auditing and corporate governance?
Chapter 29 Solutions
Corporate Finance Plus MyLab Finance with Pearson eText -- Access Card Package (4th Edition) (Berk, DeMarzo & Harford, The Corporate Finance Series)
Ch. 29.1 - Prob. 1CCCh. 29.1 - Prob. 2CCCh. 29.2 - Prob. 1CCCh. 29.2 - Prob. 2CCCh. 29.3 - What is the main reason for tying managers...Ch. 29.3 - Prob. 2CCCh. 29.4 - Prob. 1CCCh. 29.4 - Prob. 2CCCh. 29.5 - Prob. 1CCCh. 29.5 - Prob. 2CC
Ch. 29.5 - Prob. 3CCCh. 29.6 - Prob. 1CCCh. 29.6 - Prob. 2CCCh. 29 - Prob. 1PCh. 29 - Prob. 2PCh. 29 - Prob. 3PCh. 29 - Prob. 4PCh. 29 - Prob. 5PCh. 29 - Prob. 6PCh. 29 - Prob. 7PCh. 29 - Prob. 8PCh. 29 - Prob. 9PCh. 29 - Prob. 10PCh. 29 - Prob. 11PCh. 29 - Prob. 12PCh. 29 - Prob. 13PCh. 29 - Prob. 14PCh. 29 - Prob. 15PCh. 29 - Prob. 16PCh. 29 - Prob. 17PCh. 29 - Prob. 18PCh. 29 - Prob. 19PCh. 29 - Prob. 20P
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- Describe how the Sarbanes-Oxley Act of 2002 has impacted the role of auditors.arrow_forwardWhat is the role of an internal auditor in enhancing good corporate governancearrow_forwardExplain how internal auditors’ sensitivity to ethical dilemmas might be influenced by corporate governance mechanisms.arrow_forward
- What additional constraints and obligations do auditors face when doing nonaudit services for public companies?arrow_forwardHow have the Sarbanes–Oxley Act's requirements impacted a public company's ability to choose its auditors?arrow_forwardWhat additional constraints and obligations do auditors face when offering nonaudit services to public companies?arrow_forward
- What is the role of an auditor in the implementation of corporate social responsibility in an organization?arrow_forwardExplain auditors understanding of corporate governance revision, update and arguments after SOX Act (2002)arrow_forwardWhat is the role of the Sarbanes-Oxley Act and the Public Company Accounting Oversight Board?arrow_forward
- Which of the following is true about the Sarbanes-Oxley Act? A. It was passed to ensure that internal controls are properly documented and tested by public companies. B. It applies to both public and smaller companies. C. It requires all companies to report their internal control policies to the US Securities and Exchange Commission. D. It does not require additional costs or resources to have adequate controls.arrow_forwardThe Sarbanes-Oxley Act (SOX) mandates which of the following? a. Increased regulations related to auditor–client relations. b. Increased regulations related to internal control. c. Increased regulations related to corporate executive accountability. d. All of the above.arrow_forwardshould corporate governance practices be included as part of legislation or is it preferable to allow organisations to self-regulate and hence, choose their own suitable corporate governance practices and structures?arrow_forward
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