The Sarbanes-Oxley Act, frequently known as the SOX. The act was passed on in 2002 as a federal United States law. The law was drafted in response to the numerous numbers of financial scandals performed by high profile corporations such as Johnson & Johnson. The action has created a new company standard of responsibility in order to protect the valued stakeholders, as well as the public, from the deceitful practices of various organizations. The Sarbanes-Oxley Act requires companies to implement and adhere to the widespread procedures that prevent prohibited activities within the company and to act in response to any unlawful action investigations without impediment; its chief function is to defend the public by improving the consistency and accuracy of the corporate disclosures. This action enhances corporate accountability while at the same time safeguard the rest. Sarbanes-Oxley Act of the year 2002 which is the law that has the need of economic disclosures by the traded businesses. a number of most excellent practices of the SOX for instance internal management of the reports, greater part of the self-governing executives, whistle blowing agendas, compulsory inspection committee, policy of the business behaviors in addition to the principles be relevant to the for profit as well as to not for profit healthcare businesses . Completion of the SOX provisions is something which is beneficial for equally the profit plus non profit healthcare grou... ... middle of paper ... ...as well as reviewing. Works Cited Act, S. O. (2002). Sarbanes-Oxley Act. Washington DC. Cascini, K. T., & DelFavero, A. (2011). An Assessment of the Impact of the Sarbanes-Oxley Act on the Investigating Violations of the Foreign Corrupt Practices Act. Journal of Business & Economics Research (JBER), 6(10). Johnson, R. (2007). Whistling While You Work: Expanding Whistleblower Laws to Include Non-Workplace-Related Retaliation after Burlington Northern v. White. U. Rich. L. Rev., 42, 1337. Kim, Brian. "Sarbanes-Oxley Act." (2003): 235. Kress, L. E. (2009). How the Sarbanes-Oxley Act Has Knocked the SOX off the DOJ and SEC and Kept the FCPA on Its Feet. Pitt. J. Tech. L. & Pol'y, 10, 1. McLaughlin, C. P., Johnson, J. K., & Sollecito, W. A. (2012). Implementing continuous quality improvement in health care: A global casebook. Sudbury, Mass: Jones & Bartlett Learning.
Sarbanes-Oxley Act and Dodd-Frank Act are some of the most important regulations in the modern financial environment. The significance of these regulations is attributed to their focus on promoting the vitality of financial markets through addressing complexities in financial procedures and preventing financial wrongdoing. The enactment of these regulations was fueled by some financial irregularities in the corporate world and some major players in the financial markets. Despite the strong link between these laws and the financial markets, they have some similarities and differences in light of their respective objectives.
It has been a decade since the Sarbanes-Oxley Act became in effect. Obviously, the SOX Act which aimed at increasing the confidence in the US capital market really has had a profound influence on public companies and public accounting firms. However, after Enron scandal which triggered the issue of SOX Act, public company lawsuits due to fraud still emerged one after another. As such, the efficacy of the 11-year-old Act has continually been questioned by professionals and public. In addition, the controversy about the cost and benefit of Sarbanes-Oxley Act has never stopped.
Consistent accounting and financial frauds in the U.S. alerted the SEC to the imperative need for policy and corporate governance changes. The Sarbanes-Oxley Act in 2002 was enacted to encourage financial disclosures, enhance corporate responsibility, and combat fraudulent behaviour. This Act also helped create the PCAOB, which oversees the auditing practice (Stanwick & Stanwick 2009).
The Sarbanes-Oxley Act was enacted on July 30, 2002. It was enacted by the 107th United States Congress. It is named after sponsors U.S. Senator Paul Sarbanes and U.S. Representative Michael G. Oxley. It is also known as the ‘Public Company Accounting Reform and Investor Protection Act’ in the Senate and ‘Corporate and Auditing Accountability and Responsibility Act’ in the House. The main purpose of this act was to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws, and for other purposes. This act was enacted as a result to a number of corporate and accounting scandals including those affecting Enron, Tyco internationals, Adelphia, Peregrine Systems, and WorldCom. The Securities Exchange Commission (SEC) adopted many rules in order to implement the Sarbanes-Oxley Act.
Throughout the past several years major corporate scandals have rocked the economy and hurt investor confidence. The largest bankruptcies in history have resulted from greedy executives that “cook the books” to gain the numbers they want. These scandals typically involve complex methods for misusing or misdirecting funds, overstating revenues, understating expenses, overstating the value of assets or underreporting of liabilities, sometimes with the cooperation of officials in other corporations (Medura 1-3). In response to the increasing number of scandals the US government amended the Sarbanes Oxley act of 2002 to mitigate these problems. Sarbanes Oxley has extensive regulations that hold the CEO and top executives responsible for the numbers they report but problems still occur. To ensure proper accounting standards have been used Sarbanes Oxley also requires that public companies be audited by accounting firms (Livingstone). The problem is that the accounting firms are also public companies that also have to look after their bottom line while still remaining objective with the corporations they audit. When an accounting firm is hired the company that hired them has the power in the relationship. When the company has the power they can bully the firm into doing what they tell them to do. The accounting firm then loses its objectivity and independence making their job ineffective and not accomplishing their goal of honest accounting (Gerard). Their have been 379 convictions of fraud to date, and 3 to 6 new cases opening per month. The problem has clearly not been solved (Ulinski).
...he Sarbanes-Oxley act, which began with companies like Rite Aid abusing the deregulated system, are (1) the required attestation by the CEO and the CFO; and (2) better internal control mandates, procedures and documentation requirements.
Quality and quality improvement are important to any healthcare organization because these principles allows organizations to fulfill their missions more effectively. Defining what quality is may differ depending on whom is asking the question, as differing participates may have differing ideas about what quality means and why it is important. Being that quality is what unites patients and healthcare organizations, we can see the importance of quality and the need for strong policies and practices that improve patient care and their experience while receiving that care. Giannini (2015) states that this dualistic approach to quality utilizes separate measurements, conformance quality that measures patient outcomes against a set standard and
The cons to the argument for saying the Foreign Corrupt Practices Act is obsolete is discussed in the article With Wal-Mart Claims, Greater Attention on a Law by Charlie Savage. In this article Charlie Savage argues that the FCPA has always been a useful tool in stopping corruption but in recent years with companies becoming more globalized other countries gradually adopted similar laws, the United States has started to enforce it more strictly. The dollar amount of fines imposed by the Justice Department and the Securities and Exchange Commission has increased even more, including a record-setting $800 million paid by Siemens in 2008. Enforcement under the act has soared, from just two enforcement actions in 2004 to 48 in 2010. There are currently at least 100 open investigations, specialists estimate.
The Sarbanes Oxley Act (SOX) restricts management from influencing auditors through manipulation or coercion. Therefore, Sullivan’s hostility over Cooper’s internal audit as well as trying to make Cooper hold off from completing the audit are violations. The SOX also contains two components that impact the fraud investigation: the fraud discovery and whistleblower protections. It enforces an extended statute of limitations that enables fraud to be discovered within two years of occurring or five years after committed. Extending the time frame enables Cooper to still come forward if she is stalled. Cooper is WorldCom’s whistleblower, but Section 806 “prohibits publicly-traded companies from retaliating against employees who report various acts of wrongdoing to their employers” (Foti 2013). Without this protection, there will be fewer investigations as employees may be too scared to come forward. (Colbert 2004) (Carozza 2008) (Foti
Bengoa, R. (2006). Quality of care: a process for making strategic choices in health systems.. Geneva: World Health Organization.
Quality improvement (QI) involves the regular and constant actions that enable measurable improvement in health care. QI results in enhanced health services, organizational efficiency, quality and safe care to patients, and desired health outcomes for individuals and patient populations (U. S. Department of Health and Human Service, 2011). A successful quality improvement program is patient-centered, a collaboration of teams, and uses data in systems. QI helps to develop a culture of excellence in nursing, identify and prioritize areas of improvement, promote communication and collaboration, collect and analyze data, and encourage continuous evaluation of systems and processes (American Academy
Continuously improvement in the quality of patient services health care centre achieves the goals and services for the managing people. Continuous improvement of quality is a structure of process for involving personnel planning and executive for a specific structure in order to improve the quality of health. Change need to improve the structure of organization and sustaining long term process of health care centre. Management focuses on target improvement and has larger impact on actions. Management has eliminated to cause problems that usually involve incremental innovation. Continuous improvement has philosophy that permits the different factors and involves to find the labor of material.
In health care, Continuous Quality Improvement (CQI) is defined as a structured organizational process for involving personnel in planning and executing a continuous flow of improvement to provide quality health care that meets or exceeds expectations. CQI is helpful in facilitating medical errors as its main focus is the organization’s system. CQI‘s main emphasis is avoiding personal blame. Its main focus is on managerial and professional processes associated with specific outcomes, that is the entire production system. The primary goals of CQI is to guide quality operations, ensure safe environment & high quality of services, meet external standards and regulations, and assist agency programs and services to meet annual goals & objectives. All stakeholders such as patients, employees, and so forth are involved in CQI.
The SOX is to restore confidence and reassurance to the American people and notice to corporate America, unethical business practices will not be tolerated (Ferrell, et al, 2013). All key players in an organization such as the top executives, lawyers, accountants, banks, board of directors, and employees all have an obligation to do the right thing and report any wrong-doings (Ferrell, et al,
Nguyen, N. (2009, August). Improving quality and value in the u.s. health care system. Retrieved from http://www.brookings.edu/research/reports/2009/08/21-bpc-qualityreport