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 meet was signed into legislation in 2002 and made major changes in the regulation of financial practice and corporate governance. This paper caput on analyze a specific denomination eyepatch explaining how the Sarbanes-Oxley Act impacts the internal control of the insurance industry. This paper leave as well discuss canvasing around the computer and by dint of 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 Transp arency Act of 2002. The SOX Act vexs 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 rest 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 fulfillance of non-audit services by auditors, make normal company audit committees responsible for the appointment, compensation, and supervision of any registered state-supported accounting firm employed to perform audit services, anticipate that the wiz executive officer and principal financial officer certify periodic financial reports and exhibit to financial controls, hold enhanced financial disclosures, prohibit personalised loans by a corporation to its executives and direc! tors, and strengthen criminal and cultured penalties for securities fraud? (Korczyk, 2005, p 3). The insurance industry has its public companies and its reclusive companies. An example of a public insurance company would be Allstate whereas a nonpublic company would be State upraise coarse. 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 tucker a full essay, order it on our website: OrderCustomPaper.com

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