Sarbanes-Oxley Act and the Insurance Industry. Article Analysis about the Sarbanes-Oxley Act.

Sarbanes-Oxley run and the Insurance IndustryJames M SmithUniversity of PhoenixSarbanes-Oxley bring and the Insurance IndustryThe Sarbanes-Oxley affect was signed into legislation in 2002 and made major changes in the regulation of financial practice and corporate governance. This paper pass on analyze a specific denomination while explaining how the Sarbanes-Oxley Act impacts the internal control of the insurance industry. This paper will as well discuss canvasing around the computer and through the computer, the relevance of each, and how it affects the insurance industry.

The SOX ActThe Sarbanes-Oxley Act (SOX Act) is also referred to as The Corporate and Auditing Accountability, Responsibility, and Transparency Act of 2002. The SOX Act regulates the financial practices and corporate governances so that investors can contribute informed decisions regarding a company?s financials. The SOX Act was utilize after many corporate scandals came to light causing a need for something to be done.



Of the things that the SOX Act has changed are ?establishing the Public caller Accounting Oversight Board to regulate independent audit firms, restrict the performance of non-audit services by auditors, make normal company audit committees responsible for the appointment, compensation, and oversight of any registered state-supported accounting firm employed to perform audit services, anticipate that the principal executive officer and principal financial officer certify periodic financial reports and attest to financial controls, hold enhanced financial disclosures, prohibit personal loans by a corporation to its executives and directors, and strengthen criminal and civil penalties for securities fraud? (Korczyk, 2005, p 3).

The insurance industry has its public companies and its private companies. An example of a public insurance company would be Allstate whereas a nonpublic company would be State Farm Mutual. In an article by the National Association of Mutual Insurance, Sophie Korczyk, PhD wrote that the Sarbanes-Oxley Act does non fit for nonpublic insurance companies...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper