Fraudulent financial reporting at public companies has adverse effects as investors rely on generated financial statements to make decisions and purchase bonds, therefore, they are at a high risk of losing money. As a result, several federal safeguards have been put in place to combat financial reporting abuse. They include the Sarbanes-Oxley Act. The Sarbanes Oxley Act was enacted in 2002, and it holds senior management accountable for the accuracy of the firms’ financial statements. It also requires internal control to be established by public firms. The Act has increased investor confidence and improved overall corporate investment. Most importantly, there is the Security and Exchange Commission (SEC), an independent federal agency, which is tasked with the responsibility of protecting investors against fraudulent practices and promoting full public disclosure.
Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?
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Academic.Tips. (2021) 'Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards'. 2 October.
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Academic.Tips. (2021, October 2). Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards? https://academic.tips/question/compare-and-contrast-the-different-federal-safeguards-that-are-in-place-to-reduce-financial-reporting-abuse-why-are-these-considered-appropriate-safeguards/
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Academic.Tips. 2021. "Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?" October 2, 2021. https://academic.tips/question/compare-and-contrast-the-different-federal-safeguards-that-are-in-place-to-reduce-financial-reporting-abuse-why-are-these-considered-appropriate-safeguards/.
1. Academic.Tips. "Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?" October 2, 2021. https://academic.tips/question/compare-and-contrast-the-different-federal-safeguards-that-are-in-place-to-reduce-financial-reporting-abuse-why-are-these-considered-appropriate-safeguards/.
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Academic.Tips. "Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?" October 2, 2021. https://academic.tips/question/compare-and-contrast-the-different-federal-safeguards-that-are-in-place-to-reduce-financial-reporting-abuse-why-are-these-considered-appropriate-safeguards/.
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"Compare and contrast the different federal safeguards that are in place to reduce financial reporting abuse. Why are these considered appropriate safeguards?" Academic.Tips, 2 Oct. 2021, academic.tips/question/compare-and-contrast-the-different-federal-safeguards-that-are-in-place-to-reduce-financial-reporting-abuse-why-are-these-considered-appropriate-safeguards/.