Is more government oversight of corporate finances needed?
Is more government oversight of corporate finances needed? This is a question that will have as many different answers as people who answer it. I believe it is too soon to answer. I believe that we need to give the "new Corporate Responsibility Law" time to see if it is effective. I will give my point of view by saying at this time I do not believe that we need to expand on the 2002 corporate reform law.The reform law required the creation of an independent Accounting Oversight Board (AOB), which in itself is subject to Security Exchange Commission (SEC) oversight. Accounting firms that audit public corporations are required to register with the AOB. The AOB is required to review each accounting firm at specific time intervals depending on whether they conduct more or less than 100 audits a year. The AOB can investigate violations and impose sanctions. Accounting firms are barred from providing non-audit services to their clients. These include bookkeeping, accounting records or financial statements, appraisal or valuation services, broker or deal or investment advisor and legal services are a few. Registered public accounting firms also have to rotate their lead and review partners. This will ensure to prevent that n
Companies are required to file electronically any inside stock transaction within one year. It created sweeping changes in corporate fraud by holding the corporations and senior management accountable. either role is performed by the same accountant for the same company for more than five years. This Act gives corporate Whistleblowers more protection by creating criminal sanctions against those who retaliate against them. Corporate Responsibility Law also requires that the audit committee be independent from the company that it is auditing. This will prevent them from benefiting from profits by misstating company financial reports. All insider stock trades are to reported by the second day after the trade is made. It created a non-bias oversight board under direct supervision of the Security Exchange Commission. It also close some of the loopholes in the bankruptcy code, increases penalties for violation of these regulations and also gives more protection to Whistleblowers. It is very easy to go overboard with Government involvement but our country is based on the Free Enterprise system. These penalties include fines and jail time up to 10 years. Part of the reason this country grew the way it did was that 13 original Colonies did not want the Government oversight that England was forcing on them. I firmly believe we have to wait and see how well these new regulations to work. SEC can now seek to freeze CEOs and CFOs assets while being investigated.
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Acceptance Essays
