Discussion Of The Sarbanes Oxley Act Writing Assignment (Essay Sample)

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Sarbanes Oxley Law
Sarbanes-Oxley Act is a federal law in the United States that sets requirements for all the public company, public accounting firms and management firms. A number of provisions in this act also regulate the private sectors in the U.S. This bill was enacted as a result of various scandals and it covers the responsibilities of public corporations board of directors, provides for Securities and Exchange Commission to create corporations that clearly define how they comply with the law (Board, 2015).
The effect of this act on pricing practices in the U.S is that it has caused more strict compliance with the financial information through conducting procedures in finance, auditing and reporting on the same. The chief financer or issue is then required to certify the financial reporting documents in both annual and quarterly reports (Girasa, 2013). The act provided for procedures in discloser and internal auditing practices that relates to the treatment of allowance, promotion and discounts regardless of whether the company is receiving or giving these services.
The privately held companies could be a victim of this law in future whereby they will give total compliance to this act so that there will be no wrong presentation of information on which parts of the regulation act t...