Table of ContentsProvisions Impacting Financial ReportingAccounting Standards and Oversight: Reporting Timing StandardsAccountability StandardsConflict and Independence StandardsDocumentary Standards Against the backdrop of high-profile fraud and accounting misstatements, The Sarbanes-Oxley Act (SOX) was introduced in 2002 with an intended goal to make corporate accounting more transparent. The Security Exchange Commission (SEC) was given responsibility for enforcement of the law and a new oversight body was created, the Public Company Accounting Oversight Board (PCAOB), to implement the various provisions of the Act. the law. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayProvisions Impacting Financial ReportingSince these provisions fall under various provisions such as Section 302 – Disclosure of Controls, section 401 – Information to be provided in periodic reports (Off-balance sheet items), section 402 – Evaluation of internal control and others. So, for the sake of simplicity, we can divide it as follows to understand the impact on financial reporting: Accounting standards and monitoring; Reporting schedule standards; Accountability standards; Conflict and independence standards, document standards; formation of the PCAOB, consisting of a five-member independent board of directors. Their tasks are: registering accounting firms; balance sheets to shareholders and the Financial Accounting Standards Board (FASB) will set the official standards. Disclosures: All off-balance sheet transactions such as operating leases and other relationships with unconsolidated entities must be disclosed in a separate section of the notes. Internal Controls: It requires companies to conduct an assessment of the effectiveness of the organization's internal controls and provide a statement identifying the framework used by management to evaluate the effectiveness of internal controls. Reporting Timing Standards By law, all material changes in financial condition or operations must be disclosed in real time, for example, all designated securities transactions made by directors, officers and 10% of shareholders must disclose transactions in designated securities within two business days. Accountability Standards The company's CEO and CFO must certify the accuracy and fairness of the audited financial statements. An intentional violation will result in a fine of up to $5 million and 20 years in prison. The CEO and CFO must also certify that any material deficiencies in internal controls, fraud, etc. was disclosed to the audit committee and auditors. Conflict and Independence Standards Public Accounting Firms: A registered accounting firm is prohibited from providing non-audit (listed) services to a co-existing audit client. This was intended to minimize possible conflicts of interest and compromises on the integrity of the audit. The audit committee: The law requires the creation of an independent audit committee which helps improve governance by separating oversight functions from those of management. : This is just a sample.Get a custom paper from our expert writers now.Get a custom essayDocument StandardsAudit engagement working papers must be retained for a period of five years and if the firm audit is registered with the PCAOB, then for seven years. Any act of..