Welcome to

My Presentation
 Presented & Prepared By
Abdul Ahad
17 AIS 004
Dept. of Accounting and
Information Systems
University of Barishal

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 The Foreign Corrupt Practices
1 and Sarbanes - Oxley Acts
 Foreign Corrupt Practices Act (1977)
▸ prevent companies from bribing foreign
officials to obtain business.
▸ maintain a system of internal accounting
controls.
▸ these requirements were not sufficient to
prevent further problems.
▸ accounting frauds at Enron, WorldCom,
Xerox, Tyco, Global Crossing, Adelphia, and
other companies.
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 Sarbanes - Oxley Act (SOX) (2002)
▸ creation of the Public Company Accounting
Oversight Board (PCAOB).
▸ new rules for auditors, audit committees, and
management.
▸ new roles for audit committees
▸ New internal control requirements

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 Sarbanes - Oxley Act (SOX) (2002)

After SOX was passed, the SEC mandated that management

must:
▸ Base its evaluation on a recognized control framework. The
most likely frameworks, formulated by the Committee of
Sponsoring Organizations (COSO)
▸ Disclose all material internal control weaknesses.
▸ Conclude that a company does not have effective financial
reporting internal controls if there are material
weaknesses.

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Thanks!
Any questions?